Wideblue wins venture capital backing

Published on Monday 23 July 2007 00:05

GLASGOW-BASED Polaroid spinout Wideblue has raised £1.25 million in venture capital funding and created a new company, PWB Health Limited, to develop health products and market them worldwide.

Backed by 750,000 from Edinburgh venture capital firm Longbow and 500,000 from the Scottish Enterprise Co-Investment Fund, the first product planned for release next year is BreastChecker, a device which will aid women with breast self examination.

PWB is the first spinout company from Wideblue, established in 2001 as a separate business unit within the Polaroid production plant at the Vale of Leven factory in Dumbarton.

Jim Hall, the chief executive of Wideblue, said when he first saw the BreastChecker product he was "immediately impressed".

He said: "The inventors, Highland Innovations, came to us looking for help in addressing the optical performance of the product.

"We saw the potential in the technology.

"Our design team was able to develop the product as a whole, improving the ergonomics and the user interfaces as well as the optics."

Hall said the creation of PWB will enable it to complete this development but also to take the product to market next year. He is hoping it will be available in pharmacies.

He added: "We are delighted to be launching this new company as it underpins our strategy for Wideblue as being leaders in taking world-class technologies to market."

Entrepreneurial expert Robin Finlayson, a partner at Longbow Capital, said: "The BreastChecker is undoubtedly a very exciting product. This is another example of how well the Enterprise Investment Scheme helps both small businesses and investors."

Longbow has a tie-in with Alliance Boots and it is hoped the high street giant would sell the products.

Wideblue, led by Hall following a management buyout, said the firm was working with other "very exciting" young technology companies and products, some of which, he believes, have the potential to go on to become global players.

"As a company, we are also working increasingly with a number of English start-ups, which is good news for us and also good for Scotland and its reputation in this field."

The company's first year of trading closed at the end of February with over 1m in revenues ahead of target. Hall, who holds just over 30 per cent of the business, said the Polaroid connection had stood Wideblue in good stead but stressed that the spinout firm had "total autonomy".

He said: "We did a buyout of what was Polaroid's European design, development and manufacturing services division. The corporation can open up well-established channels to market, especially in North America."

Hall aims to provide an integrated design, development and manufacturing centre of excellence. Polaroid has retained a 20 per cent stake through its Springworks venture capital arm and is interested in opportunities where its extensive marketing and established routes to market could help young technology companies.

He said he was pleased to gain the backing of the Scottish Executive Co-Investment Fund.

Launched in April 2003, it has contributed 13.5m to 105 deals, alongside a private-sector contribution of 31m. The Scottish Co-investment Fund does not identify potential investments, but instead works with private-sector partners, including venture capitalist fund managers and business angels, who take responsibility for identifying and negotiating investment deals. The fund is invited by the partner to co-invest should additional equity funding be required.