The funding from the Business Growth Fund (BGF) will provide capital to support the business as it expands across the UK, Europe and the US.
M Squared has seen consistent year-on-year growth since BGF’s initial investment in 2012, more than doubling its revenues every two years.
The company is a leading business in the laser and photonics market, a sector predicted to be worth billions of dollars within the next decade.
Founder and CEO, Dr Graeme Malcolm OBE, said: “BGF has been a long-time supporter of M Squared.
“Its continued investment has allowed us to maintain our fast-growth trajectory, scale up our manufacturing capacity, launch our Innovation Group and expand in key export markets.
“Since 2012, we are thrilled to have received a number of awards and accolades for innovation and business growth, including the prestigious Queen’s Award for Enterprise in Innovation.
“BGF’s most recent investment is a resounding endorsement of the technology that we are developing and recognition of its disruptive impact.”
Founded in 2006, M Squared has established itself as one of Britain’s fastest-growing, most disruptive technology businesses.
It has already been recognised by the Deloitte Technology Fast 50, Deloitte EMEA Fast 500 and Sunday Times Fast Track 100.
This year, the company was selected by Bloomberg as one of its Business Innovators, by Everline as a Future 50 business, and awarded the prestigious Queen’s Award for Enterprise: Innovation.