This article covers a £1.3m funding round on 8 October 2025 by HTMS, a Bristol-based greentech firm developing advanced heat-resistant ceramic matrix composites for mass-market applications, founded by Dr Danilo Di Salvo and Dr Richard Grainger. £1.3m was raised, led by the Midlands Engine Investment Fund II with participation from Mercia Ventures.

What does HTMS do?

HTMS manufactures ceramic matrix composites (CMCs), fibre-reinforced ceramic materials designed for high-temperature and lightweight structural use. They are used to make heat-resistant components such as exhaust parts, brake shims and electric vehicle battery casings.

Why is HTMS useful?

Problem

People face high costs and long production times for heat-resistant, lightweight materials used mainly in aerospace. This limits their use in electric vehicle battery casings, exhausts and other automotive thermal parts.

Solution

HTMS explains that it has developed a lower-energy, faster, and cheaper process to make ceramic matrix composites. This lets manufacturers use heat-resistant, lightweight parts in battery casings, brakes and exhausts at scale.

How much did HTMS raise?

HTMS closed a £1.3m funding round, backed by Maven Capital Partners and Mercia Ventures. This makes it the 21st largest funding round in October 2025 (26 recorded). By size, the round comes in 387th for 2025 (498 recorded) in the Startupmag database, as of 8 October 2025.

For details on how Startupmag compiles its rankings, view our Methodology.

Who invested in HTMS?

Key investors in the round included the following organisations and individuals:

Midlands Engine Investment Fund II: A UK regional fund that provides early-stage equity and debt finance to smaller businesses across the Midlands, aiming to increase access to growth capital for firms in the region.
South West Investment Fund: A regional investment fund focused on providing finance to businesses in the South West of England, offering a mix of debt and equity to support regional growth.
SFC Capital: A UK early-stage investor specialising in seed and pre-seed funding for technology and scalable startups.
DeepTech Labs: An investor and incubator that concentrates on early-stage deep-technology companies and spinouts.
Plug and Play: A US venture fund and accelerator that invests across sectors through corporate-led accelerator programmes and a global venture network.
Angel investors: angel investors with an interest in deep tech and advanced materials.

In the funding announcement, Beth Bannister from British Business Bank said:

This investment is the first time the Midlands Engine Investment Fund II and the South West Investment Fund have worked together. By bringing together our expertise and funding, we have been able to support HTMS’s expansion across both regions, helping to create skilled jobs, strengthen the UK’s supply chain for advanced materials, whilst supporting one of the key growth sectors identified in the UK’s modern Industrial Strategy.

If you're researching potential backers in this space:

Explore our list of greentech venture capital firms in the UK
Browse our directory of greentech angel investors in the UK

Who founded HTMS?

The founders of HTMS are Dr Danilo Di Salvo and Dr Richard Grainger.

In the funding announcement, Dr Danilo Di Salvo, CEO and Co-founder of HTMS explained:

Richard and I saw the potential of advanced thermal composites but were frustrated with the high cost and lack of a UK supply chain. This is a fantastic moment for British manufacturing.

The company continued the funding will be used to scale up manufacturing of its products and to grow the business to champion British innovation.

Where is HTMS based?

HTMS is based in Bristol, UK.

What sector is HTMS in?

HTMS operates in the greentech sector. The sector develops technologies that reduce environmental impact and improve energy efficiency. In plain terms, it makes cleaner, more efficient materials and processes for everyday industries.

Key trends and challenges in Greentech:

Demand for advanced thermal and lightweight materials

Electric vehicles and aerospace need lighter, heat-resistant parts for safety and efficiency, for example battery casings and exhaust parts.

High production costs and scaling challenges

Manufacturing advanced materials is energy-intensive and costly, keeping them rare outside aerospace, for example in space shuttle components.

Building domestic supply chains and regional production capacity

Governments support local production to cut import risk and create skilled jobs, using regional manufacturing hubs.

For a deeper look at innovation in this space, see the greentech startups in the UK.

They've invested in HTMS

Get to know these greentech investors

Investor	Activity	Team
Maven Capital Partners	17 investment(s) investment(s)	5 contacts contacts
Mercia	78 investment(s) investment(s)	14 contacts contacts
SFC Capital	41 investment(s) investment(s)	7 contacts contacts
Deeptech Labs	1 investment(s) investment(s)	5 contacts contacts
Plug and Play	10 investment(s) investment(s)	more info