Scottish digital health company PneumoWave announced the closing of £7.5 million Series A financing.
The firm said the financing will “enable clinical validation and regulatory submission of its biosensor technology platform for remote wireless diagnosing and monitoring potentially fatal respiratory changes in high-risk patient groups.”
PneumoWave is based at Eurocentral, a few miles east of Glasgow on the M8.
The round comprises £5.2 million equity from new investors Scottish National Investment Bank, alongside £2.3 million from existing investors Scottish Enterprise, IIG, Equity Gap, Alba Equity and London and Scottish Investment Partners.
Boston based life science investor Mark Bamforth of Thairm Bio also joined the round as PneumoWave prepares to ramp up its US operations.
PneumoWave’s technology is being developed as part of an international research program in collaboration with the University of Dundee, University of Glasgow, King’s College London, and NRCH and Department of Health in Victoria, Australia.
“We are delighted to close this round and thank both our existing investors and the Scottish National Investment Bank for their support,” says PneumoWave co-founder and CEO Bruce Henderson.
“Working with leading international centres, we will now be able to accelerate our clinical validation leading to a planned regulatory submission in early 2024.
“We believe our platform will provide an invaluable tool for increasing the effectiveness of opioid use disorder treatment programmes as well as respiratory disorders in general.
“In addition, as a consequence of this investment, the company is moving to larger premises here at Eurocentral and will increase the team size from 18 to around 35, including a number of staff in the US.”
Paul Callaghan, Director Innovation, Scottish National Investment Bank, said: “The bank’s support for PneumoWave will help their aim of being able to remotely diagnose and monitor high-risk patients with respiratory conditions.
“This commercial investment has the potential to positively impact significant public health issues in this country and beyond.”
Kerry Sharp, Director, Entrepreneurship and Investment, Scottish Enterprise, said: “Supporting fast growing, innovative companies is a fundamental priority for Scottish Enterprise, and PneumoWave are a fantastic example of how Scotland’s supportive ecosystem can help ambitious early stage companies.
“This investment builds on early-stage investment support received from a number of investors, including Scottish Enterprise, and will enable Pneumowave to continue with their impressive development and company growth.”
Intuitive Investments Group CEO Robert Naylor said: “We are hugely impressed by PneumoWave and what Dr Bruce Henderson and the team have built.
“We strongly believe healthcare providers will adopt PneumoWave’s integrated platform of patient data capture and proprietary analysis, which will transform the way patients with respiratory conditions manage their health and live their lives.
“The funding round with high quality investors, given market conditions, is testament to the quality of PenumoWave’s business.”
PneumoWave was advised throughout by Ascendant Corporate Finance and DCS Legal.