Geomerics has scored a £2 million investment from Trinity Hall, University of Cambridge.
The money will be used for the roll out of the studio's new Enlighten tool and to develop a suite of new products.
Enlighten has also joined the Microsoft and Sony tools and middleware programs for 360 and PS3.
Gary Lewis, chief exec of Geomerics said: “We are delighted with this investment. This gives us precisely what we need to roll out our business plan and our long-term strategy to bring great lighting effects into games and make the gaming experience of millions even more rewarding.
“The enormous potential of the technologies we have, and the core IP in our first product Enlighten, will be developed with immediate effect. It’s an exciting time and we are grateful to the many developers and publishers who have seen the benefit of Enlighten and what it can do for their games.”
He added: “This investment will allow us to deliver the future products that will continue to revolutionise games, but it will also enable us to roll out plans to bring the benefits of our technology to other industries. The next few years are going to be extremely exciting for Geomerics.”