This article covers CSignum, a hardware startup, which has closed a seed funding round of £2.6m to accelerate commercial deployment of its EM2 product family and scale manufacturing and sales. The development aims to support continuous monitoring of submerged and subterranean assets, affecting water utilities, infrastructure owners and environmental agencies that need data from hard-to-reach sites.
CSignum, a hardware startup based near Edinburgh, has closed a seed funding round of £2.6m to accelerate commercial deployment of its EM2 product family for underwater and through-ground monitoring and to scale manufacturing and sales. The raise coincides with the appointment of John Nicholls as chief executive and comes as regulators and utilities push for more continuous monitoring of water and critical infrastructure.
Continuous monitoring of submerged and subterranean assets is becoming a regulatory and operational priority. CSignum’s technology aims to move data out of environments that conventional radio and cellular systems cannot reach, such as under water, ice, rock and soil. If the company can turn pilots into reliable, lower-cost deployments, it could change how water utilities, infrastructure owners and environmental agencies collect data from hard-to-reach sites.
The timing is notable. UK rules under Section 82 (AMP8) now require continuous measurements at many combined storm overflows and sewage discharge points, creating a near-term commercial market for remote water-quality sensing. CSignum says it has moved from pilots into volume deployments with multiple UK water utilities since completing a £6m round in April 2025.
CSignum sells a product family marketed as EM2 that uses electromagnetic signalling to carry data through media that block standard wireless links. The company positions this as an alternative to cabling or complex retrofit projects when adding sensors to submerged assets.
Recent commercial activity includes deployments with several UK water utilities, a smart buoy project in the Gulf of Mexico, pilots with two major US water-quality organisations, and through-ground sensing work on a large-scale infrastructure project in Asia. The company intends to use the new funding to scale manufacturing and expand commercial operations across those markets.
The round was backed by Archangels, PXN Ventures, Scottish Enterprise, the British Business Bank and a group of US-based angel investors. CSignum has previously raised a larger round in April 2025 and says demand for this follow-on round was strong.
Dan McKiddie, Investment Manager, Archangels, said:
CSignum continues to make strong commercial progress, and this investment reflects our continued confidence in the team and the technology, which is beginning to fulfil its potential of disrupting established markets. We’re pleased to back John's transition into the CEO role as the business enters its next phase of growth.
Claire Cramm, Investment Manager at PXN Ventures, said:
The physical world has always been the hardest place to get data out of, particularly anything underwater or underground. CSignum’s approach solves that without the cost and complexity of cabling, with monitoring requirements in water and other infrastructure sectors becoming more stringent. By backing businesses like CSignum, PXN is helping build critical UK infrastructure capability while supporting genuine deep tech that’s found early commercial pull.
Derek Shaw, Director Company Funding & Investment at Scottish Enterprise, said:
Scottish Enterprise is delighted to continue to support CSignum’s ambition to transform how critical infrastructure is monitored through its pioneering wireless communications technology. Advanced sensing and connectivity technologies are a key growth opportunity for Scotland, and companies such as CSignum can play a vital role in strengthening our economy by scaling internationally, creating high-value jobs and bringing innovative Scottish solutions to global markets.
Rob Soni, Lead US Investor, remarked:
CSignum has developed a genuinely new form of wireless communications in Electromagnetic Field Signalling that carries data through water, ice, rock, soil and concrete - media that have always blocked conventional signals, especially at the surface-air boundary. That unique capability unlocks a global market for monitoring and protecting some of the world’s most critical assets, and makes CSignum a key enabler of AI in the physical world. This explains why the round was so heavily oversubscribed.
If you're researching potential backers in this space:
John Nicholls has been appointed chief executive, replacing Jonathan Reeves, who will move to chief strategy officer. Nicholls joins with commercial and leadership experience across photonics, quantum technologies, space, semiconductors and EV infrastructure, and will focus on converting pilot projects into larger deployments.
John Nicholls, CEO CSignum said:
I’m excited to be joining CSignum at this pivotal moment in its journey. The team has built a differentiated technology and strong customer relationships across diverse market sectors, and my focus now is turning that potential into large-scale deployments. More broadly, CSignum exists to close the communications gap between inaccessible parts of the physical world and the digital and AI systems that increasingly depend on them. This investment lets us do exactly that, faster.
The funding and leadership change underline a practical trend: investors and public funds are supporting hardware and deep-tech companies that solve specific infrastructure problems rather than aiming first for consumer scale. In the UK, regulation such as AMP8 creates immediate commercial demand for continuous monitoring at thousands of sewer and overflow sites, a market that could sustain hardware suppliers capable of rugged, low-maintenance sensing.
CSignum headquarters remain in Bathgate near Edinburgh, and the company says it is hiring across the UK, US and EU as it scales. The mix of venture, public and angel backing reflects how regional development agencies and specialist investors are continuing to underwrite hardware innovation that plugs into existing infrastructure.
This deal feeds into a wider European conversation about upgrading monitoring and resilience across water and critical infrastructure as regulators tighten standards and digital systems demand richer, real-world data.
| Investors | Investment Focus | Startup Investments | Round Size | Connect |
|---|---|---|---|---|
![]() Archangels( ) Archangels focuses on investing in disruptive technology with protectable intell... Edinburgh | ||||
![]() PXN Ventures( ) PXN Ventures is a UK-based venture capital firm focused on backing high-growth c... Manchester | ||||
![]() Scottish Enterprise( ) The firm focuses on supporting early-stage and growing companies in Scotland, of... Glasgow | ||||
![]() British Business Bank( ) The British Business Bank focuses on enhancing finance accessibility for smaller... Sheffield | ||||
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