July 20, 2020
Health tech company Neurovalens raises more than £5 million to advance medical device approvals of its neurostimulation technology
Northern Ireland founded scale-up business aims to treat conditions including diabetes, insomnia, anxiety and obesity
Neurovalens, a global healthtech company headquartered in Belfast and San Diego, has raised £5.1 million in funding, which will be used to expand on the success of its initial clinical trials and develop its technology’s application for other medical conditions.
The funding round was led by IQ Capital and also included investment from Wharton Asset Management Company, The Angel CoFund (ACF), Techstart Ventures, Co-Fund II managed by Clarendon Fund Managers and the UK Government’s Future Fund.
Neurovalens’ technology was created in collaboration with world renowned research facilities at the University of California San Diego. The vision of the company is to use technology that can influence the brainstem and hypothalamus in a non-invasive way to cure or treat neurological diseases, without the need for implanted electrodes.
CEO and co-founder of Neurovalens, Dr Jason McKeown said: “We are delighted to receive this investment and support at such a critical time for our business. Our work in the US and the success of the trials we have run to date have demonstrated the potential of our technology and encouraged us to pursue other applications. With this financing and the backing of our investors we can accelerate our mission of delivering effective and non-invasive solutions for some of the most common and debilitating medical conditions.”
The funding will be used for clinical trial research and development in the UK and abroad, as well as hiring additional staff. This will facilitate the development of Neurovalens’ technology – which is going through FDA and EU regulatory approvals – towards use as an approved medical treatment around the world. Neurovalens is already in the final phase of trials for obesity and aims to have approval for insomnia and anxiety devices in the next 12 months, with diabetes trials slated for 2021.
Kerry Baldwin, Managing Partner of IQ Capital commented: “IQ Capital is delighted to further support Neurovalens on their mission to deliver medical technology that can transform the lives of those who suffer from metabolic or neurological diseases. This funding will allow Neurovalens to accelerate their entry into the US healthcare system and to establish the technology as doctor-prescribed treatments for four of the biggest global health epidemics.”
Gaby Salem, Managing Director of Wharton Asset Management Company said: “This is a very exciting time for Neurovalens as they approach their first medical device approvals. This round of funding will enable Neurovalens to primarily focus on gaining traction within the US reimbursement sector while also continuing to develop the technology for further US FDA approvals.”
Tim Mills, Managing Partner of the Angel CoFund said: “The Neurovalens team have developed a truly innovative technique to help people combat an array of health challenges. As such, they are a rare example of a startup that really has the potential to fundamentally affect the sector they are in, changing how clinicians treat certain conditions. It is exciting to see the team at Neurovalens continue to grow and the success of their clinical trials, and we look forward to seeing the team continue to push boundaries in health tech.”
Techstart NI and Co-Fund II are part of Invest Northern Ireland’s Access to Finance portfolio and part funded by European Regional Development Fund under the EU Investment for Growth and Jobs Programme 2014-2020.
Brian Cummings from Clarendon Fund Managers, which manages Co-Fund II, added: “Neurovalens is a highly innovative company and it is testament to the interest the company’s technology has generated that they have been able to close this significant funding round. The business has scaled rapidly since launching in 2017 and we are excited that this investment will help Jason and his team to apply their technology to the treatment of additional health conditions and make a real difference.”
Jamie Andrews, Investor at Techstart Ventures said: “At Techstart Ventures we want to back really exciting early stage technology companies with expert founding teams. Over time some of these companies and teams can prove themselves to have true world class potential and persuade other more specialist funders to come alongside us. This financing round, led by IQ Capital, demonstrates Neurovalens are doing just that. We are again delighted to support the Neurovalens team as they enter an exciting new growth phase.”
Notes to Editors
Neurovalens is an independent global leader in neuro-technology products. Our mission is to transform lives through creating ground-breaking neuro-tech. Founded in 2015, the company is currently run from dual-headquarters in Belfast, Northern Ireland and San Diego, California.
About IQ Capital
IQ Capital is a venture capital firm, based in Cambridge and London. With £300m assets under management, it invests in ‘deep-tech’ across sectors including machine learning, AI, robotics, and advanced engineering and materials, and data-focused propositions based on disruptive algorithms. All of the firm’s portfolio companies are capable of dominating their respective markets on a global scale. Initial investments range from £300k to £5m, with capacity for follow-on investment up to £30m.
The IQ Capital team has achieved over 20 exits to date, to companies including Oracle, Google, Apple, Huawei, and Facebook, and several IPOs. IQ Capital has led 28 investments over the last three years. The firm is currently investing at seed and Series A stage from its third venture fund.
For more information, please visit: www.iqcapital.vc
About the Angel CoFund
Launched in 2011, the Angel CoFund (ACF) is a privately managed and commercially focused institution that works alongside groups of business angels to invest in high potential SMEs across the UK, directly providing funding as well as encouraging the expansion and development of the business angel market.
To date the ACF has supported 80 companies (for example Ebury, Gousto, Crowd Vision and Hopster) providing more than £40 million in direct investment alongside more than £200m from business angels and other investors, making it one of the most active early stage investors in the country.
The ACF is a long-term investor and, in aggregate, sets aside £1 of further capital for every £1 it invests. This model gives portfolio companies and co-investors the support they need to propel strong growth. To find out more, please visit www.angelcofund.co.uk
Techstart Ventures LLP is a venture capital fund manager operating in Scotland and Northern Ireland. In Northern Ireland, Techstart Ventures LLP manages the Techstart initiative. This initiative is funded by Invest NI as part of its Access to Finance strategy and is part-funded by ERDF under the EU Investment for Growth and Jobs Programme 2014-2020. Techstart provides support for early-stage technology businesses and university spin-outs through £50m of equity funds, and a £4.5m proof of concept grant fund.
About Clarendon Fund Managers
Clarendon Fund Managers Limited is a venture capital fund manager based in Belfast, which managesthe £50m Co-Investment Fund NI.Co-Fund NI is part of Invest Northern Ireland’s Access to Finance portfolio and part funded by ERDF under the EU Investment for Growth and Jobs Programme 2014-2020. Co-Fund NI invests with private investors such as business angels or their syndicates into eligible SMEs based in Northern Ireland and provides up to 50 per cent of equity investment alongside 50 per cent from private investors on a deal-by-deal basis.