Hypermemo has successfully developed, patented, and commercialised an innovation that will change the industrial processing of glass. The Startup Development Joensuu – Investment Fund has been involved in supporting the company's growth with EUR 100,000 in seed financing.
Hypermemo Ltd, a photonics high-growth company in Joensuu, has received an investment of EUR 250 thousand from the EIC Fund managed by the European Innovation Council operating under the European Commission. The investment agreement confirmed on Thursday 18 November also includes an option for additional EUR 4.5 million equity funding. It will enable the company to transfer to industrial production, new recruitments, and move to wider operating and production facilities.
Commercial production will start next year, focusing on domestic glassware and the automotive industry
Hypermemo’s innovation is a glass cutting and finishing method based on pulsed carbon dioxide laser, which enables excellent accuracy and speed. It is a considerably more energy efficient and ecological alternative to existing solutions. The company’s product is a laser-based glass cutting equipment.
Hypermemo’s COO Erik Raita says that the company’s most promising markets are currently in glassware and automotive industries. First pilot projects have already been successfully implemented with potential customers.
Globally, industrial glass processing is a market of around EUR 1 billion and growing at an annual rate of 4.45 percent. Internationalisation has been part of Hypermemo’s plans from the beginning, as its customers are large global glass manufacturers. The company strives to conclude the first commercial contracts at the beginning of next year.
Investments in photonics business will raise Joensuu’s profile and bring further investments
In 2020, Hypermemo received an EIC Accelerator grant of EUR 2.1 million, aimed at commercialising technology innovations with high growth potential. The Startup Development Joensuu – Investment Fund has also supported Hypermemo’s growth with an investment of EUR 100,000 in June 2020, together with another Finnish venture capital investor Butterfly Ventures. The Startup Development Joensuu – Investment Fund has collected its capital from the City of Joensuu and private investors and makes seed investments in promising high-growth companies operating in the region.
– Hypermemo was an attractive investment from the beginning. The company’s innovation is unique, and its business potential is high: Pulse laser technology and its computer-controlled automation include the possibility to change the processes of the entire glass industry, describes Harri Palviainen, CEO of Business Joensuu and the Chairman of the Board of The Startup Development Joensuu – Investment Fund.
Hypermemo’s patented technology is based on an innovation developed by a Russian laser technology expert Vadim Kiyko. Kiyko was attracted to North Karelia by the region’s educational offering and photonics research: Hee settled in Joensuu and continued the development work and the commercialisation of technology in the city.
– We are extremely pleased that Hypermemo has reached such a fine growth path here. Investing in photonics business as one of the spearhead industries in the region is bearing fruit, and seed funding from our regional fund led to significant investments from abroad. Hypermemo and thus also the region, have clearly stood out on the European scale, emphasises Palviainen.
– If everything goes as planned, we will make the first deliveries to customers at the end of 2022. With the help of new funding, we will move to industrial scale production and recruit more people to support the growth. The aim is to strengthen all areas from design to production and sales to marketing, explains Raita, Hypermemo’s COO.
About the EIC Fund
Established in June 2020, the European Innovation Council Fund (EIC Fund) is a breakthrough initiative of the European Commission to make direct equity and quasi-equity investments (between €500.000 and €15 million) in European high impact and deep tech start-ups and scale ups. With a long-term perspective, the EIC Fund invests in companies from any sector, across all EU member states as well as in associated countries.
The EIC Fund aims to fill a critical financing gap and its main purpose is to support companies in the development and commercialization of disruptive technologies. This is achieved by crowding-in market players, and further sharing risk by building a large network of capital providers and strategic partners suitable for co-investments and follow-on funding.
The Fund pays particular attention to the empowerment and support of female founders as well as the ambition to reduce the innovation divide among EU countries.
Harri Palviainen, CEO, Business Joensuu and Chairman of the Board of the Startup Development Joensuu – Investment Fund
Tel: +358 500 967 744, email: firstname.lastname@example.org
Erik Raita, COO, Hypermemo Ltd
Tel: +358 40 593 8142, email: email@example.com