Digital Healthcare Funding
Digital Healthcare, Cambridge-based manufacturers of opthalmic and diabetic retinopathy software, have received £3m of funding from numerous venture capital and private equity firms.
The consortium of investors consists of Albany Ventures, Elaia Partners, Sitka Partners and YFM Private Equity.
Digital Healthcare are collaborating with Graphnet to provide digital retinopathy screening that links in with GP patient records held on Graphnet software.
Digital Healthcare has been very successful in developing medical imaging software applications for use worldwide. The Company has established links within the UK and US ophthalmology networks.
Steven Fraser of Grant Thornton acted as reporting accountant to the providers of equity in Digital Healthcare.
Mr Fraser said: "The syndicate members are well placed to provide more than just equity to Digital Healthcare. They will be able to support the already strong management team in developing and managing the growth of the business into the future."
"Following the "dot-com" boom it is clear that companies in the technology space with a credible product, a proven management team and a clearly defined target audience will continue to attract equity investment. Digital Healthcare have met all of these criteria and are well placed to succeed in the future."
Green Island Software conducted the technical due diligence on the product and the technical team. David Williams, who led the Green Island team, said: "I regard Digital Healthcare as a very promising company combining well-crafted technology with excellent sector knowledge."
Brocair Partners advised Digital Healthcare on the transaction, particularly with respect to the due diligence on the US healthcare market vs. the UK NHS, the ophthalmology and diabetes markets in the US, Digital Healthcare’s US competitive landscape, and potential exit strategies for the principals and investors.
Gregg Blake led the Brocair team and said: "The cross-border flavour of the transaction was very interesting. While this was a situation where a European company received an investment from a group of European VCs, a large part of the opportunity the investors perceived in Digital Healthcare was their US strategy: to stake a claim in a growing therapeutic area (the diagnosis and treatment of diabetic retinopathy) within the largest healthcare market on earth."