Medic raises £1.5m for app to help children prepare for surgery

A doctor who has developed an app to help reduce anxiety in children undergoing surgery has raised £1.5m from NPIF – Mercia Equity Finance, which is managed by Mercia and is part of the Northern Powerhouse Investment Fund (NPIF), Mercia’s own funds and private investors.

Dr Chris Evans, an anaesthetist working with children and a father himself, joined forces with product designer Sophie Copley to launch Little Journey. The app enables patients to take virtual tours of the hospital, with interactive animations explaining what will happen and who they will meet at each stage of their hospital journey. It also includes games, relaxation guides and information for parents.

Little Journey has been shown to reduce anxiety by 30% in high-risk patients such as those with autism or ADHD, reduce the number of operations cancelled on the day by 42% and improve recovery times by 30%. It is currently being used in over 50 hospitals worldwide. The Leeds-based company recently won a contract with one of the world’s largest clinical research organisations, which is planning on using Little Journey to support participants in a complex, international paediatric clinical trial.

The funding will help the business expand its team with the creation of 12 new jobs, further develop its technology and drive uptake in the UK and overseas. As part of the investment, the company has appointed Dr Nicolaus Henke, Senior Partner Emeritus of McKinsey and Company and former leader of McKinsey’s Global Healthcare Practice, as Chair.

Dr Chris Evans, the company’s CEO, said:

“As a doctor, I have witnessed first-hand the anxiety and distress experienced by children and their families before, during and after healthcare procedures. Many have to be sedated before a general anaesthetic, even though this tends to delay their recovery. It occurred to me that by using a fun video game format, we could engage these patients, help them prepare for their hospital visit and calm their fears.

“The investment will help us to further enhance the platform to improve patient experience, create more personalised solutions and expand our team to support our internationalisation and rapid growth.”

Rob Bennett, Investment Associate at Mercia, added: 

“Little Journey has already had a major impact on mental and physical health outcomes for thousands of children and parents. Chris and Sophie have made great progress in commercialising the product to date. This investment will support them in their aim of transforming the experiences of young patients and their families on a global scale.”

Sean Hutchinson of British Business Bank, said: 

“The Northern Powerhouse Investment Fund was set up to support ambitious companies in the North, providing access to finance and allowing them to seize opportunities for growth. Thanks to investment, Little Journey will be able to offer its innovative app to even more children and hospitals, alongside developing it further. It will also lead to the creation of jobs and allow the company to grow internationally.”

Jonathan Pollard and Olivia Brown of Ward Hadaway provided legal advice to Mercia on the investment while the company was advised by Mark Rundall and Greg Turton of Bird & Bird.

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. 

ENDS

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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 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.£940million of assets under management and, since its IPO in December 2014, has invested c.£111million gross into its direct investment portfolio.

The Group raises its own Enterprise Investment Scheme (EIS) Funds and manages Venture Capital Trusts (VCTs) 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 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, Hull and East Yorkshire, Leeds City Region, Sheffield City Region, and York & North Yorkshire
• 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