Manchester-based digital therapeutics company CareLoop has raised £1.8m to expand its platform for severe mental illness (SMI), helping improve treatment outcomes and prevent relapses for patients.

The funding comes from the GMC Life Sciences Fund By Praetura, NPIF II – Praetura Equity Finance, Verge HealthTech Fund, and SFC Capital. CareLoop plans to use the investment to expand its capabilities, including support for conditions like bipolar disorder.

Founded in 2021, CareLoop integrates with existing NHS treatment pathways, allowing clinicians to monitor patient symptoms remotely and intervene before crises occur. The platform is backed by over a decade of research from the University of Manchester, including five clinical trials demonstrating its safety and effectiveness.

CareLoop’s leadership team includes mental health experts from the University of Manchester, alongside CEO Zoë Blake, who previously helped scale Kooth plc, and COO Dr Pauline Whelan, an expert in digital health software.

The company is set to open its headquarters at Manchester’s new Sister innovation district, reinforcing the city’s position as a global leader in healthtech innovation.

CEO Zoë Blake said:
"While there are numerous digital mental health tools on the market, they tend to focus on wellbeing and common mental health problems such as anxiety and mild to moderate depression. And whilst many leverage evidence-based techniques, few have the robust clinical evidence of efficacy required to be called a digital therapeutic. Our mission has always been to provide accessible care where it’s needed to those living with the most severe and enduring mental illnesses. With approval from NICE, over 10 years of data and now the backing of key and well-connected investment partners, we’re looking forward to enhancing the way mental health support is delivered to improve the lives of many millions living with these conditions."

Last year, CareLoop received recommendation from the National Institute for Health and Care Excellence (NICE)’s Early Value Assessment programme (EVA), paving the way for NHS adoption. The platform could deliver cash savings of up to 47 times the cost of licensing by reducing hospital admissions and improving symptom management.

The funding round was co-led by GMC Life Sciences Fund By Praetura and Singapore-based Verge HealthTech Fund, which focuses on scalable healthcare innovations.

Sim Singh-Landa, Investment Director and head of the GMC Life Sciences Fund By Praetura, commented:
"We understood CareLoop’s mission, vision for transforming severe mental illness aftercare and the wider roadmap from our very first meeting with the team. Fast-forward to the present day and we’re incredibly excited to not only be supporting the company with investment but also the more than money guidance and network support it needs to scale and deploy its technology across the NHS and other global health institutions. The company is a testament to the quality of spinouts coming out of the University of Manchester, and the North West’s universities more generally. In addition, it’s great to see the GMC Life Sciences Fund by Praetura and the NPIFII – Praetura Equity Finance funds collaborate alongside co-investors from the UK and Singapore"

Scarlett Chen, Managing Partner at Verge HealthTech Fund, added:
"At Verge, we back healthtech solutions with global impact, and CareLoop fits that vision perfectly. Severe mental illness is a critical but underserved area, and CareLoop’s clinically validated platform has the potential to transform care, not just in the UK but in emerging markets where access is even more limited. We’re excited to support their mission to scale life-changing mental health solutions worldwide."

With over 70 million people worldwide living with severe mental illness, including psychosis and bipolar disorder, CareLoop’s innovation aims to ease the burden on healthcare providers. In the UK, caring for people with psychosis alone accounts for 30% of the annual mental health budget - totalling £4bn, while in the US, the direct care cost is $62bn annually, equating to around $30k per patient per year.

Following the investment, CareLoop has confirmed plans to continue developing its technology to encompass other severe mental illnesses, including bipolar disorder.