Lab Thread unites your research projects, lab operations, and scientific data into one seamless platform to accelerate your next breakthrough.

An entrepreneur who founded one of the UK’s leading biotechnology companies has launched a new venture that aims to transform laboratory data management.

Ryan Cawood, who founded OXGENE, has raised £750,000 from the Midlands Engine Investment Fund II, through fund manager Mercia Ventures, for his latest business, Lab Thread. OXGENE, founded in 2011 and also backed by Mercia, became one of the UK’s fastest growing companies and won the Queen’s Award for Enterprise before its sale to WuXi Advanced Therapies for $135m in 2021.

Ryan has joined forces with his former colleague Deyan Sultov to launch Lab Thread. Based in Silverstone, it aims to fill a gap in the market for cost-effective software that can manage complex research data across both office and laboratory environments. The funding will enable them to finalise development and commercialise the platform.

Current laboratory software is often too costly for smaller organisations, or provides only a partial solution that does not integrate with other systems. Therefore scientists tend to record research results in a range of different ways including paper notebooks, slides and spreadsheets, which makes it difficult to share data and hinders workflow.

Lab Thread aims to resolve these issues by providing a user-friendly, all-in-one solution. The platform will combine advanced DNA visualisation tools, sample inventory, project management and in-lab experiment recording capabilities, all pre-populated for everyday laboratory tasks.

Ryan Cawood, founder and CEO of Lab Thread, said: “Research is highly complex and regularly takes unexpected turns but current software platforms often fail to allow this level of flexibility. As a result, researchers often resort to using paper or lose important data. Lab Thread aims to make their jobs easier by providing interfaces for both the office and lab, stripping out the paperwork and streamlining processes along the way.

“I worked with Mercia for over a decade while building OXGENE and the partnership was very successful for both sides, so the first thing I did when starting this new venture was to reach out to Mercia again. The funding will enable us to aggressively pursue our development plans and transform laboratory data management.“

The global market for laboratory software is estimated at between £4.4bn and £5bn and is projected to grow by 8-10% annually over the next five years.

Howard Mitchell of Mercia Ventures said: “Ryan and Deyan are passionate about solving the challenges of information management in laboratories as they know how critical it is for successful research. Through their combined experience, they are ideally placed to develop a solution. We believe that Lab Thread will tap into growing demand for laboratory software and could have a significant impact on the success of the life sciences sector.”

Dave Tindall, Senior Investment Manager at the British Business Bank, said: “The Midlands Engine Investment Fund II is committed to supporting ambitious businesses with strong growth potential across the Midlands region. We are pleased to support Lab Thread as it pioneers innovation in data management. We believe this investment will not only drive Lab Thread’s growth but also contribute to transforming the sector and enabling wider benefits for other businesses. We look forward to supporting their journey and seeing the business reach new heights.”

Ross McGrath and Peter Mayhew from Shakespeare Martineau provided legal advice to Mercia on the deal.

About Mercia Ventures

Mercia Ventures is a proactive venture capital investor focused on being the first-choice partner for growth. Mercia Ventures makes equity investments of up to £10million across all sectors, with specialisms in Software, Consumer, Healthcare and Deep Tech.  

Mercia Ventures is a trading name of investment funds managed by Mercia Fund Management Limited and Mercia Regional Ventures Limited, part of the Mercia Asset Management PLC Group, and sits alongside the Group’s wider private equity, debt and proprietary balance sheet operations. The Group has 11 offices in the UK, and Mercia Ventures’ national footprint and 48 strong investment team draws on their experiences as founders, PhD scientists, software engineers, corporate financiers and management consultants to help our partner companies successfully achieve their ambitions. As at 30 September 2023, Mercia Asset Management PLC has c.£1.5billion of assets under management. Mercia Asset Management PLC is quoted on AIM with the epic "MERC".

The Group raises its own Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) Funds, and details about open offers can be found through Mercia’s website.

Mercia Asset Management PLC is quoted on AIM with the epic "MERC" and includes the following wholly owned subsidiaries -

• Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
• Mercia Regional Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
• Mercia Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560
• Frontier Development Capital Limited is authorised and regulated by the FCA under firm reference number 829697
   

About the Midlands Engine Investment Fund II

Operated by the British Business Bank, the Midlands Engine Investment Fund II (MEIF II) provides a mix of debt and equity funding.  MEIF II offers a range of commercial finance options with small loans from £25k to £100k, debt finance from £100k to £2m and equity investment up to £5 million. It works alongside the Combined Authorities, Local Enterprise Partnerships (LEPs), and Growth Hubs, as well as local intermediaries such as accountants, fund managers and banks, to support smaller businesses in the Midlands at all stages of their development.

The funds in which the MEIF II invests are open to businesses with material operations, or planning to open material operations, in the West and East and South East Midlands.

Supported by Nations and Regions Investments Limited, a subsidiary of British Business Bank plc, the Bank is a development bank wholly owned by HM Government. Neither Nations and Regions Investments Limited nor British Business Bank plc are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA).