ART Health Solutions secures £800k Pre-Seed investment from Mercia

Two sport and exercise scientists who established an app to improve employee wellbeing and performance have raised £800,000 from the North East Venture Fund (NEVF), supported by the European Regional Development Fund and managed by Mercia, to fund the next stage of growth.

Dr Phill Bell and Dr Paul Smith will use the funds to further develop their platform, One Wellbeing, and expand their Gateshead-based company ART Health Solutions with the creation of 20 new jobs in the next two years.

One Wellbeing assesses employees’ cognitive performance by asking them to complete tasks on their smartphone, and their physical wellbeing by using data from their smart watch or fitness tracker. It also takes account of factors that might affect them such as the working environment and schedule.

The app then makes recommendations to employees on ways to enhance their wellbeing and performance, and provides data insights for employers on how to help them. Experience with current clients – which include pharmaceutical giant GSK, property agents JLL, office furniture specialists Haworth and consultants 4xi – has shown that its recommendations can help achieve significant savings.

Phill and Paul previously worked with sports stars such as Chris Froome, Rory McIlroy, Jensen Button and the England rugby team before moving into consultancy work with large corporates. The app was triggered by the need to develop remote tools during the pandemic rather than monitor employees on site. They have now developed it to become a standalone product.

Phill Bell, the company’s COO, said: “We’re delighted to have raised this capital injection which will act as a catalyst to scaling our business. Our scientific approach to workplace wellbeing, combined with pioneering AI technology, ensures our clients receive evidence-based feedback and insight that really drives efficiencies and optimises employee health. We’re looking forward to reaching more clients across the globe as we develop our proposition and are excited to have the support of Mercia on our journey!”

Thea Tebble of Mercia added: “Employers now recognise that proactively managing employee wellbeing can save costs by reducing absenteeism and turnover and improving productivity. However until now such programmes have been limited to larger corporates who can afford to have specialists on site.

“The One Wellbeing app enables smaller firms to introduce a similar service at modest cost. The funding will enable the team to further develop the product, expand take-up and bring the benefits to a much broader group of companies and employees.”

Lee Humble and John O’Sullivan from Tait Walker provided fundraising advice to ART.

Lee Humble added: “I’m delighted for Phill, Paul and their team following the successful capital raise. They have a fantastic offering which appeals to a global customer base and current circumstances will undoubtedly see increased demand. With a significant investment in hand we now have the opportunity to really push the business and I am excited to see what comes next for the team, after what has already been an exciting two years working together.”

Luke Philpott from Mincoffs provided legal advice to ART Health, while Oliver Rickett from Womble Bond Dickinson represented Mercia.

ENDS

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 Connected Capital’. 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.

The Group has a strong UK footprint through its regional offices, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia currently has c.£800million of assets under management and, since its IPO in December 2014, has invested over £96million into its direct investment portfolio. Mercia Asset Management PLC is quoted on AIM with the epic “MERC”.

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

www.mercia.co.uk

About The North East Fund

The North East Fund is a suite five venture capital and loan funds which was established in April 2018, to invest £120m in around 600 North East businesses in the period to March 2023.  The fund managers provide business development advice and investment finance to small and medium sized enterprises based in the seven Local Authority areas of North East England: Northumberland, North Tyneside, Newcastle, South Tyneside, Gateshead Sunderland and County Durham. The programme encourages investment in and the commercialisation of new technologies, including low carbon technologies, as well as stimulating new business creation, private investment and entrepreneurialism in the North East, with a view to creating over 2,500 new jobs.  The North East Fund has overall responsibility for the programme, which is delivered through five separate funds, each managed by independent, FCA regulated fund managers.  Details of these, and up to date information on the progress of the programme, is available on The North East Fund’s website: www.northeastfund.org

The North East Fund has been established with funding from the North East of England European Regional Development Fund programme, the European Investment Bank and from returns on previous North East based, publicly supported investment funds.  It is jointly owned by the seven North East local authorities

About the European Regional Development Fund

The North East Fund will receive up to £58,500,000 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020.  The Ministry for Housing, 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.

About the European Investment Bank

The European Investment Bank (EIB) will lend up to £60,000,000 to the North East Fund programme.  The European Investment Bank is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.  For more information, visit:http://www.eib.org/about/index.htm

Pevini Peiris

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