The race to discover new materials with AI has mostly been a story of giant rounds and Silicon Valley valuations. Matter Machine, a spinout from the University of Liverpool, is entering with a smaller check and a notable new hire.

The company raised £4 million, roughly $5.3 million, in an oversubscribed pre-Series A round led by London-listed science investor IP Group, according to Tech Funding News. Northern Gritstone, the University of Liverpool Enterprise Fund, Norrsken Evolve, LYVA Labs and the Northern Universities Venture Fund also participated.

Lab Meets Algorithm

Matter Machine is led scientifically by founder Matt Rosseinsky, a professor of inorganic chemistry at Liverpool since 1999, a Fellow of the Royal Society and recipient of the Royal Society's Royal Medal for Physical Sciences.

The company's platform combines AI prediction with hands-on experimentation and materials characterization. Its focus is inorganic crystalline materials used in batteries and catalysts, two areas where better materials could reshape energy storage and industrial chemistry.

Matter Machine is based at the University of Liverpool's Materials Innovation Factory, an £81 million facility backed by Unilever. Rosseinsky's research group previously developed an AI tool that identified four new materials, including lithium-conducting solid-state compounds.

A High-Profile Hire

Alongside the funding, Matter Machine has brought on Gordon Sanghera to lead its commercialization strategy. Sanghera co-founded Oxford Nanopore in 2005 and took the DNA sequencing company to a London Stock Exchange listing. He stepped down as CEO in March and remains an adviser there until early 2027.

"Materials innovation underpins progress across multiple sectors from energy to manufacturing and electronics," Sanghera said.

His track record turning an Oxford spinout into a public company gives Matter Machine credibility as it looks for industrial partners.

Up Against Heavyweights

Matter Machine enters a crowded and well-capitalized field. Cambridge-based CuspAI raised a $450 million Series B in July at a $2.6 billion valuation and counts ASML, Meta, Samsung and Hyundai among its customers. Periodic Labs raised a $300 million seed round, and PitchBook data shows AI materials discovery companies have raised more than $1.2 billion since 2025.

Against those numbers, a £4 million round is modest. Matter Machine's bet is that pairing AI with a world-class experimental lab, rather than relying on simulation alone, can deliver validated materials faster.

What's Next

The company will use the funding to grow its team, develop its platform and build relationships with commercial partners across sectors. For Northern Gritstone, the Manchester-based fund chaired by Lord Jim O'Neill, it marks a first investment tied to Liverpool.

The key test is commercial traction. Matter Machine needs paying customers before its better-funded rivals lock up the industrial partnerships that matter most. With Sanghera leading that effort, it has a credible shot at proving the north of England can compete in one of AI's most promising scientific frontiers.

Source

Tech Funding News — "Oxford Nanopore co-founder joins Matter Machine's £4M round: can Liverpool take on CuspAI?"