This funding brings the total raised in its Series C round to $125 million, oversubscribing the original target by more than 50%. According to Pragmatic, investors have been attracted by the massive potential for it unique, flexible integrated circuits that look to replace mainstream silicon chips, as well as to enable trillions of smart items in applications that would never be possible with silicon.
The extra funding will be used to accelerate and expand Pragmatic’s growth plans. This includes the company’s second fabrication line (FlexLogic-002), which will increase production capacity by more than 5 times, and its new 15-acre Pragmatic Park site in Durham in the Northeast of England. In addition, the company has doubled its footprint in Cambridge with an option to double again within the next year.
New investors include British Patient Capital, a commercial subsidiary of British Business Bank, the UK government’s economic development bank; and In-Q-Tel, which invests in high-tech companies to advance technology capabilities for the US intelligence community and its allies.
Commenting on their investment, Catherine Lewis La Torre, CEO of British Patient Capital, said: “Pragmatic is another great example of a UK company which has developed and commercialised world-leading technology from a UK base. We are delighted to be investing in the further growth of this homegrown semiconductor manufacturing business via Future Fund: Breakthrough, our dedicated deeptech fund which is investing in some of the country’s most innovative and dynamic businesses.”
Additional new investors include Prosperity7 Ventures (the diversified growth fund under Aramco Ventures), the North East Development Capital Fund and the Finance Durham Fund (both managed by Maven Capital Partners).
Commenting Scott White, CEO of Pragmatic said, “This oversubscribed investment round, in spite of the challenging macroeconomic conditions, is a huge vote of confidence in Pragmatic’s unique technology and business traction. Our signature ultra-low cost, flexible form factor, fast production cycle time and minimal carbon footprint address key challenges across the industry, allowing rapid time-to-market for novel electronics applications as well as enabling localisation of semiconductor manufacturing and driving towards net-zero product lifecycles.”
Erik Langaker, Chair of Pragmatic added, “We continue to see growing investor and customer interest in affordable solutions for digitisation and control of supply chains, reinforced by government initiatives such as the recent EU legislation regarding Digital Product Passports. This is the beginning of electronics in everything – supported by great technology developed and scaled in the UK.”
