Daresbury based Medcotec raises £2.4m led by Mercia Ventures and LYVA Labs
This article covers Medcotec, a Daresbury-based healthtech startup, raising £2.4m in a seed funding round to commercialise a single-use powder transfer valve designed to reduce contamination and blockages in pharmaceutical manufacturing. The funding will support further trials, early commercial rollout and team expansion, targeting pharmaceutical manufacturers seeking to cut downtime, contamination risk and cleaning costs.
Medcotec, a Daresbury-based healthtech startup, has raised £2.4m in a seed funding round to commercialise a single-use powder transfer valve aimed at reducing contamination and blockages in pharmaceutical manufacturing. The cash will fund further trials, early commercial rollout and team expansion — a practical bet on addressing a persistent operational problem in drug production.
Why it matters
Powder transfer is a small but costly part of pharmaceutical manufacturing. Production failures driven by blockages, contamination and cleaning downtime are estimated to cost the industry around £9 billion a year. Medcotec’s funding is notable because it channels capital into a hardware and process-optimisation solution rather than into software or drug development, signalling investor appetite for operational innovations that can shave costs and compliance risk from complex supply chains.
Inside the product
Medcotec’s first product, the Helyx valve, is a single-use, full-bore powder transfer valve designed to avoid the build-up and flow constraints associated with split-butterfly valves. Those conventional valves have a central disk where powder can accumulate, increasing the risk of blockages and contamination; they also require time-consuming cleaning of stainless steel systems between runs.
By contrast, the Helyx has no central obstruction and keeps powder contained within the valve body. As a single-use component, it removes cleaning cycles and associated downtime, and Medcotec says its design can withstand high pressure, addressing a limitation of some existing full-bore systems. The company is already conducting trials with a leading pharmaceutical company and other manufacturers that use powder handling systems.
Medcotec currently employs four people and expects to create four additional jobs in the next 12 months. The funds will be used to complete further trials and build the team required for initial commercialisation.
Who are the investors?
The seed round was led by NPIF II – Mercia Equity Finance, which is managed by Mercia Ventures under the Northern Powerhouse Investment Fund II (NPIF II). Additional backing came from LYVA Labs, the Liverpool City Region Seed Fund (managed by AXM Venture Capital), and private investors. LYVA Labs previously provided pre-seed investment in June 2025 and supported Medcotec through its Incubator and Accelerate programmes.
NPIF II is a regional fund aimed at increasing the supply and diversity of early-stage finance across the North of England, offering loans and equity up to specified caps. The Liverpool City Region Seed Fund is part of local efforts to accelerate innovative early-stage businesses in that city region.
In the announcement, Robert Hornby, at Mercia Ventures, said:
The pharmaceutical landscape is changing – the rules on contamination are tightening, and companies are increasingly doing shorter production runs. Medcotec solves some of their key pain points. We believe it has the potential to become the leading provider of single-use powder transfer systems and are pleased to support it on its journey.
In the announcement, Lorna Green, CEO at LYVA Labs, said:
Medcotec received pre-seed investment from LYVA Labs in June 2025 and engaged in both our Incubator and Accelerate programmes to further develop their prototype and commercial plans. This investment, led by Mercia Ventures, will enable them to take their product to market and grow their business in Liverpool City Region.
In the announcement, Rupert Wingate-Saul, Investment Director at AXM Venture Capital, said:
Medcotec is a great example of advanced manufacturing in the Liverpool City Region. We are delighted to back a team with deep domain knowledge, strong industry relationships and a laser-focus on improving powder transfer.
In the announcement, Cllr Paula Basnett, Liverpool City Region Combined Authority Cabinet Member for Economic Growth and Regeneration, said:
Supporting innovative businesses to start, scale and succeed is central to our growth ambitions for the Liverpool City Region. Through the Liverpool City Region Seed Fund, we are helping ambitious companies access the investment they need to develop and bring world-leading ideas to market. Medcotec is a strong example of the calibre of businesses emerging from our region, and this investment will support their next stage of growth while further strengthening Liverpool City Region’s reputation as a hub for innovation.
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Founder perspective
Medcotec was founded by Emerson Mulvaney and Mike Taitt. Mulvaney brings more than 20 years of senior leadership experience across medical, bioscience and technology companies; Taitt is a serial entrepreneur and the co-founder and former CEO of EZE Talk and Money Saver Telecom Group. The company positions the Helyx as a pragmatic engineering improvement intended to reduce contamination risk and production outages.
In the announcement, Emerson Mulvaney, CEO, at Medcotec, said:
Current powder transfer systems are often based on 20-year-old technology. It is almost impossible to avoid some level of contamination and as ingredients become more potent, the risks grow. Blockages and contamination can also cause costly production outages. With its unique design, our valve could be a gamechanger for the industry. The funding will allow us to bring it to market.
The bigger picture
Medcotec’s raise sits at the intersection of advanced manufacturing and healthtech supply-chain resilience. The deal illustrates how regional funds and incubator programmes are directing capital toward hardware-led startups that target operational pain points in regulated industries. It also highlights the role of regional public and quasi-public funds — such as NPIF II and the Liverpool City Region Seed Fund — in de-risking early commercialisation for engineering-focused ventures.
This transaction adds to a broader UK trend where investors are looking beyond pure software plays and backing manufacturable solutions that can demonstrably improve compliance, throughput and cost for pharmaceuticals and adjacent sectors.
They've invested in Medcotec
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| Investors | Investment Focus | Startup Investments | Round Size | Connect |
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 NPIF II – Mercia Equity Finance( ) | ||||
 LYVA Labs( ) LYVA Labs focuses on early-stage investments in the Health & Life Science, Clean... Liverpool  | ||||
 Liverpool City Region Seed Fund( ) | ||||
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