A Sheffield company which has developed a new encryption solution for telecoms and data networks has raised over £1m from NPIF – Mercia Equity Finance, which is managed by Mercia and part of the Northern Powerhouse Investment Fund (NPIF), Mercia’s EIS funds and private investors.

Sitehop’s system solves a major challenge for telecoms companies, cloud and internet service providers – how to add encryption to their network to ensure it is secure but without affecting quality or causing it to slow down.

Sitehop’s Field Programmable Gate Array (FPGA) board can be added to an existing network with minimal time and cost. As encryption takes place on the board rather than on the server, it enables the network to maintain superior performance while using just a tenth of the energy of current systems. It also protects against cyber attacks as hackers would need to access the board to breach the system.

In addition to telecoms and cloud providers, Sitehop’s solution can be used by big companies to create secure private networks at a fraction of the cost by removing the need for physical interconnections. It could be used to safeguard IoT systems such as ‘smart’ factories and connected devices such as drones and self-driving cars.

Sitehop was founded in 2021 by two engineers. Melissa Chambers was co-founder of Prism Microwave which provided products for wireless infrastructure and was sold to Tongyu Communications in 2016, while Ben Harper has worked on cyber systems for companies including BAe Systems and Sheffield-based Curvalux.

The company is in talks with a number of international network providers and is set to begin a trial in Brazil before launching the system in spring. The funding will enable it to invest in equipment to support the trial and expand its six-strong team with the creation of 20 new jobs by the end of 2023.

Melissa Chambers, CEO, said:

“With the surge in demand for video calls and cloud computing, network operators are under pressure to roll out high-speed services rapidly and security is often the last consideration. Because of the impact on performance, many services are being launched without encryption which puts users’ data at risk.

“Our hardware-based solution has none of the disadvantages of current systems and makes the addition of security a ‘no brainer’. The funding will help us to take the final step and bring it to market.”

Dan Thomas of Mercia added:

“Almost every aspect of our lives now relies on the internet but the connected world brings with it new risks. Until now there has been no way to provide the necessary security without slowing down response times and affecting quality. Ben and Melissa have found a novel way to address a problem that even the big tech companies have so far failed to solve. We are pleased to be able to support them on the next stage of their journey.”

Sean Hutchinson, at British Business Bank, said:

“Sitehop is an innovative Yorkshire company that has developed world class scalable solutions for businesses that need encryption to operate safely. Cybersecurity is one of the biggest emerging markets and Northern companies, like Sitehop, are leading the way when it comes to offering first-class protection. Not only are Melissa and Mike helping create a stronger north, they are also stamping Yorkshire’s mark on the international scene as well.”

The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank. 

ENDS

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About Mercia Asset Management PLC

Mercia is a proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of balance sheet, venture, private equity and debt capital: the Group’s ‘Complete Connected Capital’. The Group initially nurtures businesses via its third-party funds under management, then over time Mercia can provide further funding to the most promising companies, by deploying direct investment follow-on capital from its own balance sheet.

The Group has a strong UK footprint through its regional offices, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia currently has c.£940million of assets under management and, since its IPO in December 2014, has invested c.£111million gross into its direct investment portfolio.

The Group raises its own Enterprise Investment Scheme (EIS) Funds and manages Venture Capital Trusts (VCTs) details about open offers can be found through Mercia’s website.

Mercia Asset Management PLC is quoted on AIM with the epic “MERC” and includes the following wholly owned subsidiaries –

• Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
• Enterprise Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
• EV Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560

www.mercia.co.uk

About The Northern Powerhouse Investment Fund

• The Northern Powerhouse Investment Fund will invest in Microfinance, Business Loans and Equity Finance sub-funds which will offer financing ranging from £25,000 to £2m, specifically to help small and medium sized businesses secure the funding they need for growth and development.
• The Northern Powerhouse Investment Fund is operated by British Business Financial Services Limited, wholly owned by British Business Bank, the UK’s national economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity.
• The Northern Powerhouse Investment Fund is supported by the European Regional Development Fund, the European Investment Bank, the Department for Business, Energy and Industrial Strategy and British Business Finance Limited, a British Business Bank group company.
• The NPIF covers the following LEP areas: Tees Valley Combined Authority, Greater Manchester, Cheshire and Warrington, Cumbria, Liverpool City Region, Lancashire, Hull and East Yorkshire, Leeds City Region, Sheffield City Region, and York & North Yorkshire
• The project is receiving up to £140,359,192 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Department for Communities and Local Government is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit https://www.gov.uk/european-growth-funding.
• The funds in which Northern Powerhouse Investment Fund invests are open to businesses with material operations, or planning to open material operations, in, Yorkshire and the Humber, the North West and Tees Valley.
• The British Business Bank has published the Business Finance Guide (in partnership with the ICAEW, and a further 21 business and finance organisations). The guide, which impartially sets out the range finance options available to businesses and provides links to support available at a regional level, is available at www.thebusinessfinanceguide.co.uk/bbb