Funding helps drive growth and job creation at digital health business

Manchester-based CareLoop Health is reporting strong early traction following a £1.8m funding round.

The backing came from NPIF II – PXN Equity Finance, the GMC Life Sciences Fund by PXN Ventures, Verge HealthTech Fund and SFC Capital, supporting the business to scale its technology and expand clinical adoption across the UK and internationally.

Launched in 2021, Careloop Health is a University of Manchester spin-out focused on transforming care in severe mental illness, including schizophrenia and psychosis.

Since securing the investment in 2025, CareLoop Health has grown its team from two to ten employees, strengthening its clinical, technical and commercial capabilities as it moves towards wider adoption.

The business has also secured an SBRI Healthcare grant along with funding from NHS England, enabling pilot programmes across five NHS trusts, while building a strong commercial pipeline as it looks to convert pilots into long-term contracts.

The company’s growth reflects increasing momentum across the UK’s digital health and life sciences sectors, both identified as priority areas in the UK’s Modern Industrial Strategy.

Alongside its UK growth, CareLoop Health has begun expanding internationally, with two sites in the US.

The company has also been accepted into the NHS Innovation Accelerator, with COO Dr Pauline Whelan awarded a fellowship.

CareLoop Health’s technology uses daily patient-reported data to identify early warning signs of deterioration, with a 50 per cent reduction in relapse rates.

The platform has also been recognised by NICE through its Early Value Assessment programme, highlighting its potential to deliver significant cost savings and improved outcomes for the NHS.

Looking ahead, the business plans to build on its growing traction across the UK, focusing on converting pilot programmes into commissioned services and working towards making its technology a standard part of care for severe mental illness. It will also continue to develop its platform to support additional conditions.

Zoë Blake, founding chief executive of CareLoop Health, said: "NPIF II has given us the breathing space to grow our team and work much more closely with NHS partners as we move CareLoop into  clinical use.

"It's helped us take years of research and start turning it into something that’s being used day-to-day in services. We’re now focused on building on that momentum and expanding access for more people with severe mental illness."

Louise Chapman, fund manager at PXN Ventures, said: "It’s been really positive to see the progress CareLoop Health has made since our investment, building out its team and continuing to develop a platform that is now being used in NHS settings through a number of pilot programmes.

"The business has taken a strong, evidence-led approach from the outset and what stands out is how that foundation is now translating into real-world clinical use."

Sue Barnard, senior investment manager at the British Business Bank, added: "CareLoop Health is helping to demonstrate the strength of the North West’s digital health and life sciences sectors, which is a key part of the UK’s Modern Industrial Strategy to drive nationwide growth.

"Through NPIF II, we’re continuing to back ambitious companies across the North that are leading the way in innovation, providing new solutions and allowing us to compete on an international stage.”