Secure chip developer lands £5 million backing

A tech start-up has raised £5 million to accelerate production of an ultra-secure computer chip after picking up more than £2 million orders.

SCI Semiconductor says the investment round will help meet growing demand for its memory-safe technology, designed to tackle vulnerabilities exploited in cyber attacks.

It adds the backing will also help create about 15 jobs over the next year.

The round was led by Northern Powerhouse Investment Fund II fund managers PXN Ventures and Mercia Ventures, alongside investment from Osney Capital, US-based Black Opal Ventures and private investors.

It follows a £2.5 million investment led by NPIF II and Mercia Ventures last year.

Founded in 2022, Sheffield-based SCI has already made its first devices, secured £7.7 million of Government contracts and agreed partnerships with Google Research and Microsoft.

Its ICENI range uses CHERI technology, a Government-backed framework designed to improve memory safety by embedding security within computer architecture and controlling how memory is accessed.

The company says memory safety issues are a factor in around 70 per cent of cyber attacks, with demand for stronger protection increasing as artificial intelligence creates new cybersecurity challenges.

SCI has also been appointed a core supplier to the Government’s Accelerated CHERI Adoption Programme.

The business was founded by industry veteran Haydn Povey, Silicon Valley executive Krishna Anne and Microsoft Research specialist Dr David Chisnall, alongside academics from the universities of Cambridge and Manchester.

Haydn said: “The problem of memory safety is finally being taken seriously. 

“As artificial intelligence is identifying hundreds of critical vulnerabilities, it is clear huge swathes of technology are open to attack. 

“Additionally, with so much code generated by artificial intelligence, the question is how much of it is fit for purpose and what risk that could pose to systems.

“Memory safe technology helps overcome these challenges. 

“The funding will enable us step up production and develop a new generation of chips here in the UK.”

SCI employs 35 people across its Sheffield headquarters and Cambridge office.

Its semiconductors are designed and packaged in the UK, with fabrication carried out in Germany.

Will Schaffer, investment director at Mercia Ventures, said: “SCI Semiconductor brings together some of the leading minds in the industry. 

“They have developed an elegant solution to a trillion-dollar problem – one that has so far eluded other players – and the business has quickly gained traction.”

Dr Elizabeth Young, investment manager at PXN Ventures, added: “We’re proud to be backing the SCI Semiconductor team, who are doing incredibly important work addressing rising threats to critical infrastructure and other key sectors with hardware-level cybersecurity.”

The £660 million Northern Powerhouse Investment Fund II (NPIF II) fund, operated by British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to help small and medium-sized businesses.

Sarah Newbould, senior investment manager at British Business Bank, added: “Supporting companies like SCI Semiconductor demonstrates how NPIF II is helping to scale innovative, high-growth businesses.”

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