Turbocharger technology business Aeristech has secured the funds it needs to complete the development of a new electrical system.

Venture capital firm Midven has led the undisclosed round through its Exceed Fund alongside existing shareholders and other investors.

Technology developed by Aeristech allows car manufacturers to downsize engines without reducing performance, as well as lowering emissions due to lower weight and fuel usage.

Midven first became involved with the business in June 2010 when it led a £500,000 round. Midven invested through its Early Advantage Fund alongside Minerva Business Angels Network and members of the Oxford Investment Opportunity Network.

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.

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Bryn Richards founded Aeristech in 2006 as an engineering research and development consultancy firm to develop hybrid turbo technology.

Commenting on the new investment, Richards adds, ‘The levels of increases in fuel pricing have been such that it is a major concern when taken as part of the cost of owning cars and commercial vehicles.

‘We are working with some big names and this funding comes at a time when we are looking to move the business on to the next level.’

Midven’s £18.4 million Exceed Fund was set up in December 2009 and has LDC as an investor. Recent transactions from the fund include fertility diagnosis and treatment business Fertility Focus and labelling content management company Kallik.

Ian Fairclough, investment manager for Midven’s Exceed Fund, adds, ‘Aeristech is at a stage where, having developed the technology through several commercial projects, it is well on the way to becoming a revenue-generating concern.

‘The area of turbo technology is one of enormous potential, and it’s great to see a company from this region working with some big players which enhances the West Midlands as the capital of the UK automotive sector.’