A business that has developed a revolutionary oil analysis technology plans to double its workforce after obtaining a seven-figure investment following the coronavirus outbreak in the midst of competitive market conditions.
In a financing round led by the investment consortium Eos Advisory, RAB-Microfluidics obtained £ 1,24 million.
The funding will allow RAB-Microfluidics, based in Aberdeen, to improve its growth-driving team. The “lab-on-a-chip” technology of the company enables businesses to track on-site the state of oil used in heavy machinery instead of having to ship it to laboratories.
Oil and gas, aerospace, transportation and manufacturing are sectors represented by the business.
The funding round is a remarkable vote of confidence in RAB-Microfluidics at a moment when volatility characterizes the outlook for industries such as oil and gas and aerospace.
In response to the drop in oil prices caused by the Covid 19 pandemic, companies operating in areas such as the North Sea have reduced investment. In the aerospace industry, similar shutdowns have led to a recession.
RAB-Microfluidics, however, may be able to build on the efforts of many businesses to reduce costs and improve productivity in order to help them deal with challenging conditions.
Rotimi Alabi, RAB-Microfluidics founder and CEO, said the company is revolutionizing services for oil testing and analysis.
“We’re doing this by delivering oil analysis more than a thousand times faster and about ten times cheaper than the current approach, which relies on shipping oil samples to laboratories.” he said.
RAB-Microfluidics was described by Eos Advisory managing partner Andrew McNeill as one of the most exciting early stage technology companies in the energy sector in Scotland.
He said Eos, based in St Andrews, has brought a large group of investors together to help RAB-Microfluidics in its next growth step.
London-based Newable Ventures and current investors funded the most recent round of funding.
Funding was offered by Scottish Enterprise.
With a background in geosciences, Mr. Alabi founded RAB-Microfluidics in 2016 and built the company from the University of Aberdeen.
The company currently employs five people.
The Eos Syndicate was founded in 2014. The syndicate says it has made 12 investments in early-stage science, engineering and technology companies, along with 23 follow-on investments.
Other companies in its portfolio included sensor company Novosound and biotechnology company ICL Therapeutics.