Specialist investor launches new fund to support life science spinouts

SPECIALIST funder Mercia Fund Management is looking to support healthcare start-ups across the West Midlands by collaborating with the West Midlands Academic Health Science Network.

Warwickshire-based MFN, a wholly-owned subsidiary of Mercia Technologies, sees the sector as ripe for growth.

Its new SME Innovation Fund is led by Mercia’s Head of Life Sciences, Peter Dines.  It aims to grow the number of spinouts looking to improve healthcare services across the NHS, particularly those in line with the WMAHSN’s core strategic priorities: advanced diagnostics; genomics and precision medicine; mental health; recovery, crisis and prevention; long-term conditions; and wellness and the prevention of illness.

The WMAHSN brings together investment, energy and expertise from across the health science community.  In collaborating with Mercia, it will help to provide repayable grants of up to £50,000 to at least ten new innovations each year.  

In so doing, the fund will support innovations that have the potential to deliver a high impact for society, grow the reputation of healthcare delivery within the West Midlands, both in the UK and abroad, and support the spread and adoption of patient-focused innovation across the region.

Mercia, which has a strong track record for financially supporting life science businesses, is looking to replicate its recent deal funding Manchester Imaging, a dental diagnostic spinout from the University of Manchester.

Commenting on the new fund and the partnership with WMAHSN, Peter Dines said: “This project has been several years in the making, and I am very pleased that we are now able to launch a fund with real potential to make a significant difference within the community.

“The NHS is constantly looking to improve patient care and deliver more for less.  Given the current cost constraints, it is more important than ever that we build and fund businesses that can improve patient care in a cost effective and sustainable way.

“Mercia has already lent its support to start-ups and spinouts across the spectrum of medical services, and we look forward to discovering further investment opportunities within the diverse healthcare sector. We have already identified a number of exciting companies in the region and we look forward to being able to support their future growth.”

Tony Davis, Commercial Director of WMAHSN, said: “We are delighted to be working with Mercia on the launch of the SME Innovation Fund.  The fund is a sign of our continued commitment to SMEs in the West Midlands’ life sciences sector, helping to create wealth in the local economy through industry collaboration and attracting inward investment, as well as delivering improvements in healthcare across the region.”

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