Healthtech firm raises £2m as pandemic boosts demand for patient app
A healthtech business with an app that helps patients communicate with clinicians remotely has raised a further £2m to help expand its use.
Advanced Digital Innovation (ADI) has raised funding from NPIF – Mercia Equity Finance, which is managed by Mercia and is part of the Northern Powerhouse Investment Fund, the UK government’s Future Fund and the company’s Chair and founder Bob Gomersall.
The Yorkshire-based company says the pandemic has boosted interest in its MyPathway app, which removes the need for appointment letters and calls, allowing patients to agree care plans with clinicians, who can then monitor their progress and receive feedback.
Over 55,000 patients are now signed up to the system, which is already used in hospitals in Sheffield, the North West and Essex, and most recently has been adopted in Leeds. The company has completed a successful initial trial in Northern Ireland.
The investment will allow ADI to enhance the product to make it easier for patients to sign up remotely and to achieve further accreditations to extend its use in other areas of the NHS. The company, which currently employs 15 staff, is planning to create 20 new jobs at its headquarters in Saltaire in the next 12 months.
John Eaglesham, CEO, said: “MyPathway has really proved its worth during the lockdown. With routine appointments having to be cancelled, it has made it so much easier for hospitals to communicate with patients and keep track of their condition.
“The pandemic has also led to a major shift in mindset as clinicians and GPs recognise there is not always a need to see patients in person and are more open to new technology. Ultimately this will lead to lower costs and, since MyPathway increases feedback from patients, will allow better evaluation of care pathways and more effective treatment.”
Will Schaffer, Investment Manager with Mercia, said: “Healthcare has entered the digital era as the pandemic has driven a change in working practices. MyPathway revolutionises the relationship between patients and healthcare providers, saving time and money and making the patient’s healthcare journey much easier to manage. The investment will allow ADI to increase uptake and extend its reach to other parts of the healthcare system.”
Grant Peggie, Director at the British Business Bank, said: “NPIF has a strong track record of supporting innovative companies in the Northern healthtech sector by providing investment. This investment in ADI helps us to build on this trend, as NPIF continues its commitment to investing in ambitious Northern businesses across a host of emerging and traditional sectors. It is our aim to support growing businesses and boost the Northern economy as a result.”
David Strachan and Lucy Holroyd of Schofield Sweeny provided legal advice to the company on the investment while Adrian Ballam of Ward Hadaway acted for the Fund.
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
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About Mercia Asset Management PLC
Mercia is a proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of balance sheet, venture, private equity and debt capital: the Group’s ‘Complete Capital Solution’. The Group initially nurtures businesses via its third-party funds under management, then over time Mercia can provide further funding to the most promising companies, by deploying direct investment follow-on capital from its own balance sheet.
Mercia has a strong UK regional footprint through its eight offices, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia has almost £0.8billion of assets under management and, since its IPO in December 2014, has invested over £90.0million across its direct investment portfolio.
The Group raises its own Venture Capital Trusts (VCTs) and Enterprise Investment Scheme (EIS) Funds and details about open offers can be found through Mercia’s website.
Mercia Asset Management PLC is quoted on AIM with the epic “MERC” and includes the following wholly owned subsidiaries –
- Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
- Enterprise Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
- EV Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560
About The Northern Powerhouse Investment Fund
- The Northern Powerhouse Investment Fund will invest in Microfinance, Business Loans and Equity Finance sub-funds which will offer financing ranging from £25,000 to £2m, specifically to help small and medium sized businesses secure the funding they need for growth and development.
- The Northern Powerhouse Investment Fund is operated by British Business Financial Services Limited, wholly owned by British Business Bank, the UK’s national economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity.
- The Northern Powerhouse Investment Fund is supported by the European Regional Development Fund, the European Investment Bank, the Department for Business, Energy and Industrial Strategy and British Business Finance Limited, a British Business Bank group company.
- The NPIF covers the following LEP areas: Tees Valley Combined Authority, Greater Manchester, Cheshire and Warrington, Cumbria, Liverpool City Region, Lancashire, Humber, Leeds City Region, Sheffield City Region, York, North Yorkshire and East Riding
- The project is receiving up to £140,359,192 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Department for Communities and Local Government is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit https://www.gov.uk/european-growth-funding.
- The funds in which Northern Powerhouse Investment Fund invests are open to businesses with material operations, or planning to open material operations, in, Yorkshire and the Humber, the North West and Tees Valley.
- The British Business Bank has published the Business Finance Guide (in partnership with the ICAEW, and a further 21 business and finance organisations). The guide, which impartially sets out the range finance options available to businesses and provides links to support available at a regional level, is available at www.thebusinessfinanceguide.co.uk/bbb
The Coronavirus Business Interruption Loan Scheme (CBILS) is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS). British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). Full details on CBILS and the list of participating CBILS lenders can be found on the British Business Bank website at: www.british-business-bank.co.uk/CBILS