A digital therapeutic platform and University of Manchester spinout that focuses on tackling severe mental illness has closed a £1.8m funding round from the GMC Life Sciences Fund By Praetura, NPIF II – Praetura Equity Finance (which is managed by Praetura Ventures as part of the Northern Powerhouse Investment Fund), Verge and SFC Capital.
Launched in 2021, CareLoop integrates with existing treatment pathways, providing patients with digital support while enabling clinicians to remotely monitor and track patients’ symptoms, along with personalised algorithmic escalation prediction to prevent episodes.
CareLoop was founded by mental health experts Professor Shôn Lewis, Professor John Ainsworth and Professor Sandra Bucci, who are academics at the University of Manchester, along with Zoë Blake (CEO), who previously delivered 10x growth at the digital mental health platform Kooth plc, and COO Dr Pauline Whelan, previously co-director of the GM.Digital unit at Greater Manchester Mental Health NHS Foundation and the University of Manchester’s Digital Health Software lead.
The company, which is set to open its first headquarters in Manchester’s new Sister innovation district, is backed by over a decade of research, including five clinical trials, with rigorous evidence-based testing to prove its safety and effectiveness in symptom management and reduction in relapses.
The seed round has been co-led by the GMC Life Sciences Fund By Praetura – which is managed by Praetura Ventures on behalf of Bruntwood SciTech, the Greater Manchester Combined Authority (GMCA) and Enterprise Cheshire and Warrington – and Verge HealthTech Fund, a Singapore-based VC firm investing exclusively in impactful healthcare technologies, which counts Impact Ventures by J&J Foundation among its investors.
NPIF II – Praetura Equity Finance, which is managed by Praetura Ventures as part of the Northern Powerhouse Investment Fund, also took part in the round with SFC Capital.
Last year, the platform was recommended by the National Institute for Health and Care Excellence’s (NICE) Early Value Assessment programme (EVA), which recommends products for use in the NHS. CareLoop has also identified cash savings for the NHS of between five and 47 times the cost of licensing its product, depending on the severity of each condition.
Zoë Blake, CEO of CareLoop, said: “While there are numerous digital mental health tools on the market, they tend to focus on wellbeing and common mental health problems such as anxiety and mild to moderate depression. And whilst many leverage evidence-based techniques, few have the robust clinical evidence of efficacy required to be called a digital therapeutic. Our mission has always been to provide accessible care where it’s needed to those living with the most severe and enduring mental illnesses. With approval from NICE, over 10 years of data and now the backing of key and well-connected investment partners, we’re looking forward to enhancing the way mental health support is delivered to improve the lives of many millions living with these conditions.”
Sim Singh-Landa, investment director and head of the GMC Life Sciences Fund By Praetura, said: “We understood CareLoop’s mission, vision for transforming severe mental illness aftercare and the wider roadmap from our very first meeting with the team. Fast-forward to the present day and we’re incredibly excited to not only be supporting the company with investment but also the more than money guidance and network support it needs to scale and deploy its technology across the NHS and other global health institutions. The company is a testament to the quality of spinouts coming out of the University of Manchester, and the North West’s universities more generally. In addition, it’s great to see the GMC Life Sciences Fund by Praetura and the NPIFII – Praetura Equity Finance funds collaborate alongside co-investors from the UK and Singapore.”
Dr Kath Mackay, Chief Scientific Officer for Bruntwood SciTech said: “The GMC Life Sciences Fund By Praetura Fund was created to back businesses just like CareLoop. A dynamic Manchester-based spinout set to make a national and international impact on mental health care. Their innovative platform is another great example of the region’s ability to create world-class life sciences businesses. We’re excited to be supporting Zoe and the team in the company’s next chapter.”
Sue Barnard, senior investment manager at British Business Bank, said: “We’re excited to see another flagship business in the thriving North West technology scene access funding to continue their development of innovative solutions to a vital health service. It’s a good example of how the NPIF II funds can work alongside other funders to provide much-needed finance to businesses across the North.”
Roisin McCallion, Business Development and Investment Director for the University of Manchester Innovation Factory, said: “We are proud to have played a role in CareLoop’s journey from an innovative concept rooted in University of Manchester research to a highly promising spinout securing significant investment. This milestone underscores the strength of CareLoop’s evidence-based approach, integrating rigorous clinical research with cutting-edge digital technology to address severe mental illnesses. At the Innovation Factory, we are committed to enabling ventures like CareLoop to scale impactful solutions that deliver measurable benefits to patients, clinicians, and healthcare systems worldwide. We look forward to seeing their continued success in transforming mental health care delivery.”
