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Cobalt Light Systems

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Introduction

Across Europe and Asia’s busiest and most prestigious airports, Cobalt Light Systems’ technology is installed into security checkpoint operations to rapidly screen liquids for explosives and other potential threat materials.

Alongside airport security applications, Cobalt’s technology is used to analyse pharmaceutical materials including capsules, tablets, gel and solutions. Founded in 2008, Cobalt was acquired in 2017 – just ten years later – for £40 million by Agilent. At the time, Cobalt was engaged with more than 20 of the 25 largest global pharma companies as well as more than 75 airports across the EU and Asia-Pacific regions.

Whilst performing research on laser spectroscopy at Rutherford Appleton Laboratory (RAL), Professor Pavel Matousek with his colleagues came across a phenomenon that allowed scientists to investigate substances in depth through barriers. His Spatially Offset Raman Spectroscopy (SORS) technology, which enabled users to perform deep sub surface analysis, went on to be hailed as one of the UK’s fastest growing technology companies in 2014.

Matousek’s technology quickly went from idea to commercialisation as a Science and Technology Facilities Council (STFC) spin out company, thanks to early support from both the UKI2S and the tech transfer office.

The Science

Cobalt’s SORS technology is a revolutionary, non-invasive rapid analysis tool which verifies raw materials through unopened containers, including multi-layered paper, plastic sacks and opaque bottles and coloured glass.

Cobalt’s rapid transmission Raman spectroscopy (TRS) technology is also used in Pharma, which can analyse a full tray of 100-200 pharmaceutical tablets or capsules within minutes. This method is much faster than conventional wet-chemistry methods, allowing customers to release products faster and reduce working capital.

In 2016 Cobalt launched Resolve, a hand-held through-barrier Raman instrument for identifying hazardous materials through sealed containers for applications in Hazmat incident management, military EOD, first response, search & law enforcement, and screening at ports & borders.

UKI2S Impact

10 years

from founding to exit

5-fold growth

in revenue between 2013 and 2014

£50,000

pre-incorporation investment for proof of concept

Professor Pavel Matousek said:

“I’m grateful to investors for accommodating my specific needs – I’ve always been motivated by doing science, so when I was asked to join the company full time and turned it down, it was quite the surprise to some. But as the inventor of the tech, I was already aware of my limitations. I wasn't the one who could lead or do accounting for the company, so I needed others' contribution to the success of the company. UKI2S brought people straight into the enterprise at the beginning, who understood what to do, and how to move the business smoothly forward, at the proper speed. When it comes to investing, UKI2S’ value-add goes beyond finances, and my experience working with them demonstrates how beneficial their approach can be.”

When our team first met Matousek (now Cobalt’s Chief Scientific Officer) at our partner lab STFC in 2005, we knew his fundamental research could be used for good. However, whilst the technology was compelling it was not yet clear which industry applications should be addressed. So, we awarded Cobalt funding to develop proof of concept and run experiments to prove the capability of the technology and its potential applications (as well as its restrictions).

As a result, Cobalt went from initial investigation disclosure to securing the first investment in just 3.5 years. Further investment led to the TRS100 product, the mainstay of the business for the first 5 years. We supported Cobalt and the other investors in the recruitment of an experienced management team and board, helping them to raise additional capital to pursue the airport security market.

Moving from academia to entrepreneurship is no mean feat, but together with the tech transfer office, a strong commercial ecosystem, experienced investors and a wide range of customers, Matousek and his team had the tools needed to drive Cobalt to commercial success.

At the time of the acquisition, Paul Loeffen, CEO of Cobalt, said of the deal that:

"Cobalt and Agilent have similar cultures focused on customer-centric innovation. The combination of Cobalt's patented technologies with Agilent's product-development expertise, manufacturing capabilities, channels and customer base will allow us to scale our operations to take advantage of this rapidly growing market. Importantly, the Harwell Campus went on to become Agilent's global centre for Raman spectroscopy."

Recognising the motivators of the people within a business early on is so important. It’s about making sure you bring in the right people at the right time, to support and guide a startup to success.

Alongside Cobalt’s impressive exit at £40 million, its technology won both The 2014 Royal Academy of Engineering MacRobert Award, the UK’s most prestigious prize for innovation in engineering and the Queen’s Award for Enterprise in International Trade 2015.

Cobalt was also placed at the top of the 2015 Sunday Times SME Export Track 100 ranking of UK companies with fastest-growing exports, as well as being listed within the top ten on the 2014 Tech Track 100, which ranks the UK’s fastest-growing technology companies. All of which is an incredible testament to the people and tech which has propelled Cobalt to market leaders in spectroscopy technology and applications.

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