Creavo Medical Technologies, the UK-based med-tech company, has announced that it has raised a further £13.4m ($17m) in equity funding. The round was oversubscribed and exceeded Creavo’s funding target, reflecting strong investor support and endorsement of Creavo’s strategy and team.
Led by IP Group plc, the developer of intellectual property-based businesses and working with investors from Coutts Private Bank, the round was strongly supported by existing shareholders including the University of Leeds, and new, private and institutional investors from Europe, the USA and China, including Parkwalk Advisors, the leading EIS fund manager specialising in UK university innovation and Puhua Capital Ltd, a leading Venture Capital firm in China with a strong presence in the healthcare sector.
Creavo is a privately held medical device company that has developed a uniquely deployable diagnostic technology, using magnetocardiography (MCG) to measure, display and store electromagnetic fluctuations caused by heart activity.
This new funding follows a successful year for Creavo, with the start of a large multicentre clinical study at four major emergency departments across the UK. The technology has the ability to meet an urgent clinical need in global cardiology, to help physicians quickly rule out serious heart-related problems at the point of admission to emergency departments. Identifying these patients early reduces patient anxiety and saves the healthcare sector valuable time, resources and bed space. Financially, the device has the potential to save the UK healthcare system alone £200 million a year.
This core technology has a range of potential applications outside of emergency detection and diagnosis, and could play a large role in helping to better understand and predict the arrhythmias that can result in sudden cardiac death, as well as further diagnostics in other organs.
Robert Barr, Chairman of Creavo Medical Technologies, commented: “To have attracted such highly respected companies such as Parkwalk Advisors and Puhua Capital Ltd is a strong endorsement of Creavo’s strategy, team and its state of the art medical technology.”
“The funding will be used to continue growing the Creavo business and move towards a full commercial launch in Europe. We will conclude our clinical study in the UK, build our US operation and associated clinical study and conduct further research to expand the use of our technology into other applications. It will also enable us to develop a fully commercial device encompassing all of the learnings from the initial clinical studies. We are delighted that there has been such strong support and endorsement of Creavo’s strategy and team.”
Simon Graindorge, Director of Healthcare at IP Group plc, said: “We have supported Creavo from the very beginning and have been impressed with its substantial growth and ambition. I am particularly excited about this next chapter in Creavo’s evolution which will see its technology launched commercially for the benefit of patients and providers in the emergency room, a setting which continues to dominate the news and is an enormous challenge globally.
“Creavo is well-positioned to disrupt multiple healthcare markets to benefit both patients and payors, and we are excited to have led this funding round in Creavo.”
About Creavo Medical Technologies
Creavo Medical Technologies was established in 2014 to commercialise advanced sensor technology to detect and display magnetic images of various organs, developed by Professor Varcoe following 10 years of research at the University of Leeds in the UK.
The company has an experienced management team, with a mix of research, medical device, manufacturing, global regulatory and clinical strategy specialists.
About IP Group plc
IP Group was set up with a mission to evolve great ideas, mainly from partner universities, into world-changing businesses. This is achieved by systematically helping to create, build and support outstanding intellectual property-based companies.
IP Group has been the major investor in each of the funding rounds for Creavo Medical Technologies and has worked with the company from a very early stage.