SenseLogix, whose devices help businesses and government departments monitor and reduce electricity usage in their buildings, will use the fund to extend current technology and develop new products.

The company, which launched last June, plans to create up to 20 new jobs in the next year.

Finance Wales, the ventures arm of the Welsh Assembly Government, along with private equity fund Beringea and regional equity firm Northstar Ventures, are the major investors in the company in this round.

Stuart Veale, managing partner at Beringea, will become a non-executive board member of the company following the investment.

SenseLogix chief executive Jonathan Luke says: ‘We have seen strong early-stage market traction from both end users and service partners, and we are confident that our technology will provide good energy savings to end users and assist our service partners in providing enhanced, low carbon energy services to their clients.’