Optalysys: Scaling deep tech photonics at Platform in Leeds
By Bruntwood SciTech
A base for deep tech growth
Optalysys is a deep tech company developing photonic computing technology that uses light, rather than electricity, to perform complex mathematical functions for AI processes, with the potential to deliver significantly greater speed and efficiency than conventional electronic computing.
Founded in 2013 by Nick New, the company grew out of research undertaken during his PhD at the University of Cambridge. Today, its main operations are in Leeds at Platform, with a base in Bristol and international expansion underway as it moves towards commercial scale-up.
Like many deep tech businesses, Optalysys has faced the challenge of securing investment for technology that requires significant development before reaching commercial maturity. Success depends not only on access to capital, but on finding investors who understand complex technologies, their different risk profile and the longer journey to commercialisation.
More than access to funding
Finding the right investors has been just as important to Optalysys as securing funding itself.
"The challenge isn't simply raising investment. It's finding investors who understand complex technology and are prepared to back a long-term vision."
Nick New, Founder and Chief Product Officer, Optalysys
Northern Gritstone participated in an earlier Optalysys investment round and subsequently led its A2 round. Its combination of patient capital and deep-tech expertise is particularly important for businesses where significant investment may be required before the full commercial opportunity can be realised.
But capital is only part of the picture. Developing Optalysys’ technology has required specialist expertise in photonics, optics, manufacturing, mathematics and cryptography, alongside university resources and investment.
That influenced the decision to build the company's main operations in Leeds. Nick wanted to demonstrate that globally significant technology could be developed in the North and found many of the capabilities Optalysys needed within the region, including links with the University of Leeds, specialist manufacturers and technical talent.
“You can do cutting-edge technology development in the North of England that can have a global impact. The skills, resources and funding exist, but hubs that bring them together are vital for making the connections businesses need.”
Nick New, Founder and Chief Product Officer, Optalysys
Platform has provided a base within that wider technology ecosystem, helping Optalysys connect with investors and other organisations supporting its growth. Nick particularly values the role Bruntwood SciTech can play in bringing technology businesses and the investment community together.
Capital for the next stage
As its technology matures, Optalysys is increasingly focused on international commercialisation. AI represents a significant opportunity, with increasingly large models creating growing demands for computing power, energy and data movement. Optalysys is developing technology designed to address some of these constraints.
That next stage will require different relationships and resources again. The company is expanding internationally, including establishing a presence in California to bring it closer to major technology companies and potential customers, while continuing to develop its UK operations.
Optalysys’ experience demonstrates that scaling deep technology takes more than a breakthrough idea and an injection of capital. Businesses need investors who understand the journey, alongside the specialist skills, advice, partners and networks that can help turn technology into a commercially scalable business.
Read more scale-up stories in our Built to Scale white paper
Optalysys is an optical computing company, so we develop hardware in the form of chips that use light rather than electricity to generate maths functions at much greater speeds and efficiencies compared to digital technologies. We started the company back in 2013 off the back of a predecessor company which was originally spun out of Cambridge University. Being from Yorkshire, I was keen to bring the company out of Cambridge and settle in Yorkshire to, firstly, have a good example of how high-tech developments can actually be done in the North of England and not just in the South of England or indeed Silicon Valley. What we tapped into then is a lot of photonics and optics expertise in the local area, particularly with local universities and manufacturers.
For a company like ours developing hardware, it's a very capital-intensive development; it's also a deep tech development, and what that means is that the type of capital that you need to bring in to help fund that needs to be very patient capital. Now, what Northern Gritstone brings is exactly that deep tech knowledge and expertise to apply to companies like ours. To have Northern Gritstone actually leading the last funding round, which is an A2 round, and being part of the A1 round that came before that, was actually vital for what we needed.
What Bruntwood SciTech does particularly well is actually bring together the investment community with high-tech companies in the area as well, and it's one area that we need to do more of in this country as a whole. So we chose Platform in Leeds because it was the primary centre for technology development, gives a very professional look to the company, and allowed us to bring in what was a very significant £23 million investment from venture capitalists both in the UK and abroad.
So the future for Optalysys is that we will continue to build out in our UK offices, but we're also building out on the US side as well, and looking to turn what is a UK-based company into a significant international company going forward.
