The latest investment rounds in digital health and life sciences, including a seed round for an AI-powered respiratory diagnostic platform, an equity and grant package to expand a diagnostic testing platform, and a single-asset continuation fund for the UK’s largest online pharmacy.

TidalSense raises $19 million in seed funding

Cambridge-based medical technology company TidalSense has raised $19 million (£14.8 million) in a seed funding round to accelerate the commercial deployment of its AI-driven respiratory diagnostic device, N-Tidal Diagnose. 

The round was led by new investor, North American healthtech impact fund Cross-Border Impact Ventures, alongside returning growth capital backers BGF, Airstream Capital and Foresight Group. 

The transaction brings the total capital raised by the company to $40 million, including $11 million in non-dilutive grant funding.

The equity financing will be used to expand TidalSense’s commercial operations across the UK, Ireland and Europe, while supporting market entry into the US. The capital will also fund pipeline expansion of its diagnostic software platform into new indications, including asthma. 

To support this growth, the company has expanded its senior leadership team with the appointments of Andrew Wheeler, former director of market access and public policy at NICE; Eric Mayes, former founding chief executive of Endomagnetics; and Donna Parr, managing partner at Cross-Border Impact Ventures.

Chronic obstructive pulmonary disease (COPD) is the UK’s third leading cause of death. An estimated 600,000 individuals in the UK are currently awaiting a formal COPD diagnosis, with over half of NHS integrated care regions lacking sufficient capacity to meet diagnostic demand. 

The primary bottleneck is the traditional diagnostic assessment called spirometry. It is a 19th-century test requiring forced exhalation and specialised technician training, and takes up to an hour per patient. This causes significant diagnostic delays, leaving patients at risk of acute exacerbations that frequently require emergency hospital admissions.

TidalSense’s N-Tidal Diagnose is the first non-spirometry AI diagnostic device to receive a Class IIa CE mark under EU MDR for COPD. The handheld device requires patients to breathe normally for 75 seconds to capture a carbon dioxide capnogram waveform. Proprietary AI algorithms analyse the results to detect COPD with over 90% diagnostic precision in primary care settings, compared to standard spirometry’s 71%.

Because the test can be administered by any healthcare professional, clinical throughput increases to four to six patients per hour. The platform is already in active clinical use across several NHS sites, including the Suffolk and North-East Essex Integrated Care Board, NHS Wales, and community lung screening hubs in Southampton and Glasgow.

“Respiratory disease has been neglected by governments and health systems for years, often overshadowed by cancer and cardiovascular disease, even though it affects one in five people,” said Ameera Patel, chief executive officer of TidalSense. “We’re still diagnosing in the 21st century with a test invented in the 1800s, and one that needs specialist equipment and training most of the world doesn’t have access to. That’s the gap we want to close.”

Regenerus Laboratories signs £8 million equity and grant funding

UK-based diagnostic health testing provider Regenerus Laboratories has raised £8 million in combined equity and grant funding to drive international market expansion, expand its clinical doctor network, and scale its digital diagnostic platform. 

The capital comprises a £5 million equity investment from FTSE 250 regional growth manager Foresight Group, alongside a £3 million research and development grant from Scottish Enterprise, Scotland’s national economic development agency.

The funds will support the company’s growth strategy across four areas: enhancing its core diagnostic portfolio, accelerating market penetration, advancing international supply chain and logistics infrastructure, and expanding the commercial footprint of its digital platform. Grant funding from Scottish Enterprise will specifically target the ongoing development of the digital software engine and fund R&D programmes at the company’s Edinburgh-based research facility.

Founded in 2012, Regenerus provides access to over 150 health tests alongside digital reporting tools, educational resources and clinical decision support. Its platform integrates biomarkers, genetic sequencing and patient-reported symptoms into a single interface to give clinicians a comprehensive view of patient health. The platform also features a patient-facing directory designed to connect individuals directly with accredited healthcare professionals to interpret complex functional test results and guide preventative treatment plans. 

Regenerus was advised by corporate finance firm Bosham Capital Advisors.

“We believe advanced diagnostic testing is a critical part of solving the increasing pressure on secondary care. This funding allows us to put better testing, better data and better clinical insights into the hands of more practitioners, so they can keep their patients healthier for longer,” said the firm’s chairman and co-founder Ben Thomson.  

G Square Healthcare closes £500 million continuation fund for Pharmacy2U

Healthcare specialist private equity firm G Square Healthcare has closed a £500 million single-asset continuation fund for Pharmacy2U, the UK’s largest online pharmacy. Led by secondaries manager Coller Capital alongside a syndicate of blue-chip institutional investors, the transaction is one of the largest GP-led secondary deals within European healthtech. 

G Square Capital IV is co-investing alongside the new vehicles, with additional commitments from reinvesting existing shareholders and the Pharmacy2U management team.

The transaction provides exit liquidity to existing limited partners while securing long-term capital to fund Pharmacy2U’s expansion. The new capital will support ongoing buy-and-build M&A activity, drive further investment into proprietary dispensing automation and technology, and expand the company’s private and NHS clinical service portfolio.

Founded in 1999, Pharmacy2U currently has more than 2 million patients and dispenses over 3.5 million prescription items every month. Since G Square’s initial investment in 2018, the business has achieved greater than ten-fold growth in revenue and EBITDA. Growth has been driven by investment in automated centralised dispensing facilities, expanded clinical offerings and an aggressive acquisition strategy that saw six corporate transactions completed and integrated over the past 24 months. 

Lazard advised G Square for the transaction, while Proskauer and Goodwin acted as legal counsel.

“This is a significant milestone for Pharmacy2U and a powerful vote of confidence in our team, our technology and the opportunity ahead,” said Pharmacy2U’s executive chair Deirdre Burns.