NI neurotech startup closes £6m funding round

Neurovalens, a Belfast-based neurotech company, has raised £6m (€6.95m) to support its commercial expansion in the US and other global markets.

The funds will be used to boost sales of its current medical devices and pursue additional approvals from US regulators.

Its technology delivers mild electrical stimulation to targeted parts of the brain and nervous system to treat conditions such as insomnia, anxiety and post-traumatic stress disorder (PTSD).

Neurovalens already has clearance from the US Food & Drug Administration (FDA) for a device to treat insomnia and for its Calm device, which helps manage anxiety.

Dr Jason McKeown, chief executive of Neurovalens, said: “We’re delighted to have the support of the Investment Fund for Northern Ireland and our other new and existing investors at this key stage in our journey.

“This funding will enable us to significantly scale sales of our current medical devices, and also to extend our product portfolio through additional FDA approvals.

“Our technology offers an entirely new approach to treating serious global health challenges through safe, non-invasive neurostimulation.”

The investment round was led by the Investment Fund for Northern Ireland and included Whiterock’s Growth Capital Fund, along with follow-on support from IQ Capital, Innovation Ulster Limited, the Angel Co-Fund and private investors.

A £1m loan from the IFNI debt fund, managed by Whiterock, was also included.

Founded in 2015 by Dr McKeown and neuroscientist Paul McGeoch, Neurovalens has raised about £20m through a mix of debt and equity from UK investors including Wharton Asset Management, IQ Capital, Techstart Ventures, Angel Co Fund, Beltrae Partners, Co-Fund NI managed by Clarendon Fund Managers, Innovation Ulster Limited and the British Business Bank.

The IFNI was launched by the British Business Bank to support growing firms with debt finance and equity investment.

The £33m equity fund is managed by Clarendon Fund Managers, offering equity stakes of up to £5m.

Brian Cummings, investment director at Clarendon Fund Managers, said: “Clarendon is proud to continue our support for Neurovalens through the IFNI fund.

“The company has achieved some very significant milestones over the past few years including medical device clearance from the FDA for the treatment of some serious health conditions.

“We look forward to working with Jason and his team as the business expands its commercial operations in the US and beyond.”