Funding round includes new investment from a strategic development fund as well as further investments from existing industry and financial investors bringing the total equity funds raised by Reaction Engines to over £150m
Culham, Oxfordshire, 11 January 2023 – Reaction Engines is pleased to announce a further £40m ($47.7m) funding round, led by Strategic Development Fund (SDF), the investment arm of UAE’s Tawazun Council. A number of Reaction Engines’ existing investors also participated in the round, which is the Company’s largest equity funding to date.
The new capital will be used to accelerate the development and commercialisation of Reaction Engines’ pioneering thermal management technologies which have multiple uses across a range of applications including advanced propulsion systems and sustainable technology solutions. The capital will support further investment in Reaction Engines’ operations in the UK where the Company currently employs 240 people.
Mark Thomas, Chief Executive of Reaction Engines, said: “This additional funding round builds on a strong track record of capital raising and will allow Reaction Engines to accelerate the development of our innovative technology and develop further commercial applications. We are delighted to welcome SDF as a new investor and their expertise will bring an exciting new international dimension to the business. The combination of a new cornerstone investor with further support from existing shareholders, is a strong vote of confidence in our ability to deliver our ambitious goals.”
Abdulla Naser Al Jaabari, Managing Director and CEO of SDF, said: “Our investment is based on our belief in the capability of the Applied Technologies division to commercialize its industry-leading thermal management and propulsion technologies. With the maturity of these key enabling technologies, we believe the Company is at a turning point that will result in considerable growth over the medium to long-term.”
Reaction Engines and SDF have also agreed to explore additional commercial opportunities and leverage the potential demand for innovative heat exchange applications in aerospace, energy, desalination, and industrial waste heat recovery throughout the UAE and the region.
“We look forward to engaging as an active shareholder and collaborating with the other strategic investors in order to drive the development and growth of Reaction Engines by collaborating through Tawazun and SDF’s network, portfolio companies and affiliates to add value to Reaction Engines and potentially the UAE’s related industries,” added Al Jaabari.
SDF joins other Reaction Engines’ investors, including BAE Systems, Rolls-Royce, Boeing HorizonX Ventures, Baillie Gifford Asset Management and Schroders, as well as the UK and US governments. The investment follows previous successful funding rounds in which Reaction Engines has raised a total of over £150 million in equity investments from strategic and financial investors.