A UK start-up, whose powder transfer valve "solves some of the key challenges facing pharmaceutical manufacturers", has raised over £2.4m to commercialise its technology.
Medcotec
Medcotec has secured funding from NPIF II – Mercia Equity Finance, which is managed by Mercia Ventures as part of the Northern Powerhouse Investment Fund II (NPIF II), alongside LYVA Labs, the Liverpool City Region Seed Fund which is managed by AXM Venture Capital, and private investors.
The Daresbury-based business is already working with a leading pharmaceutical company as well as other manufacturers that use powder systems. The funding will enable it to carry out further trials and build its team.
Production failures are estimated to cost the global pharmaceutical industry £9 billion a year, with powder transfer systems being a key factor. Medcotec’s first product, the Helyx valve, has been engineered to offer safer, more cost‑effective powder transfer, particularly for shorter production runs.
It delivers aseptic, sterile full‑bore powder flow without external confinement while keeping material fully contained within the valve body, and its mirror architecture means a single valve concept can be used on both sides of the transfer, reducing SKUs and simplifying validation and training.
As a single‑use assembly it removes the cleaning and turnaround burden of stainless‑steel systems and fits naturally into single‑use processing strategies, with a metal, reusable version in development that builds on the same core to provide modular single‑use flow paths for more demanding or extended processes.
Medcotec was founded by Emerson Mulvaney, who has over 20 years’ experience in senior leadership roles in medical, bioscience and technology companies, and serial entrepreneur Mike Taitt, the co-founder and former CEO of EZE Talk and Money Saver Telecom Group. The company currently employs four people and expects to create four new jobs in the next 12 months.
Emerson Mulvaney, CEO, said: “Current powder transfer systems are often based on 20-year-old technology. It is almost impossible to avoid some level of contamination and as ingredients become more potent, the risks grow. Blockages and contamination can also cause costly production outages. With its unique design, our valve could be a gamechanger for the industry. The funding will allow us to bring it to market.”
Robert Hornby of Mercia Ventures added: “The pharmaceutical landscape is changing - the rules on contamination are tightening, and companies are increasingly doing shorter production runs. Medcotec solves some of their key pain points. We believe it has the potential to become the leading provider of single-use powder transfer systems and are pleased to support it on its journey.”
Lorna Green, CEO of LYVA Labs, added: "Medcotec received pre-seed investment from LYVA Labs in June 2025 and engaged in both our Incubator and Accelerate programmes to further develop their prototype and commercial plans. This investment, led by Mercia Ventures, will enable them to take their product to market and grow their business in Liverpool City Region".
The Liverpool City Region Combined Authority’s £10m Seed Fund is designed to accelerate the growth of innovative early-stage businesses across the Liverpool City Region.
Rupert Wingate-Saul, investment director at AXM Venture Capital and manager of the Liverpool City Region Seed Fund, said: “Medcotec is a great example of advanced manufacturing in the Liverpool City Region. We are delighted to back a team with deep domain knowledge, strong industry relationships and a laser-focus on improving powder transfer.”
Liverpool City Region Combined Authority Cabinet Member for Economic Growth and Regeneration, Cllr Paula Basnett, added: “Supporting innovative businesses to start, scale and succeed is central to our growth ambitions for the Liverpool City Region. Through the Liverpool City Region Seed Fund, we are helping ambitious companies access the investment they need to develop and bring world-leading ideas to market. Medcotec is a strong example of the calibre of businesses emerging from our region, and this investment will support their next stage of growth while further strengthening Liverpool City Region's reputation as a hub for innovation.”
NPIF II – Mercia Equity Finance can provide equity investments in the NPIF II area with a primary focus on the Yorkshire and Humber regions of City of Kingston upon Hull and East Riding of Yorkshire, North Yorkshire, South Yorkshire and West Yorkshire.
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North of England. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.
