Midven invested alongside Minerva Business Angels Network and members of the Oxford Investment Opportunity Network, both associations of private investors.

The funding was sought to progress testing programmes of Aeristech’s vehicle engine turbocharger with two vehicle manufacturers. The turbocharger reuses exhaust gases to raise air pressure inside car engines, increasing fuel efficiency.

Bryn Richards, chief executive of Aeristech, says the company’s objective is to capture a 10 per cent market share over the longer term.

Richards adds: ‘We are focusing on developing and marketing [our technology] to the auto and off-highway sector. Our longer term plan is that this will lead to a licence of our technology or sale of the company to a manufacturer in the auto supply chain.’

Aeristech previously raised funding to develop its turbocharger from The Carbon Trust through its incubation scheme, as well as receiving £500,000 in government grants to develop the prototype.