The funding will be used to help target new overseas markets, expand Noveltea’s product range and create 20 new jobs at the company’s base in Newcastle.
Founders Lukas Passia and Vincent Efferoth appeared on the BBC TV series Dragon’s Den in 2018 hoping to secure investment.
The pair rejected offers from three of the dragons – including an £80,000 investment for 39% of the business – and went on to run a successful crowdfunding campaign, raising £340,000.
North East Venture Fund
Noveltea’s latest round of investment came from the North East Venture Fund, supported by the European Regional Development Fund. Mercia, the Government’s Future Fund and crowdfunding site CrowdCube managed the investment.
Noveltea co-founder and joint managing director Lukas Passia said: “We’re absolutely delighted to secure this investment and can’t wait to start pushing further on with our ambitious plans. Our unique drinks are already receiving international acclaim and this funding will allow us to grow and reach many more customers and introduce them to Noveltea.”
German-born Passia and business partner Efferoth launched Noveltea in 2016 and is reportedly the first company to cold brew and infuse tea with a matching spirit.
In 2019, the drinks firm received investment from Dagmar Wöhrl, a German politician, celebrity and businesswoman who stocks the drink across her chain of hotels.
Mercia’s Thea Tebble added: “Noveltea is a premium beverage in a range of unique blends. Its quality product and ambitious management team is a great foundation for future growth. The business has already achieved impressive traction and Mercia’s support will help it expand into new markets.”
Meanwhile, last month, poultry processor Avara Foods is to create 60 new jobs and increase productivity as part of a £11m investment into its Brackley, Northamptonshire site.