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Oxford Capital leads $2.5 million seed round – National MRI Scan

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The wait for diagnostic imaging is over: National MRI lands $2.5million from Monzo Founder and ex-Bupa CEO to get vital medical imaging done in a week

• The country faces record numbers of people waiting for diagnostic imaging with the number of people waiting more than three months for a scan being 22 times higher than in 2019.
• Waiting times for MRIs can now be cut from over six weeks to just seven days thanks to the platform’s proprietary technology, inevitably saving countless lives.
• The seed was co-led by Oxford Capital and YZR.

As the UK experiences record waiting times for diagnostic imaging, Digital Health startup, National MRI today announced its oversubscribed $2.5m seed led by Oxford Capital, YZR, Founders Factory, KM Capital and well-known industry angels Tom Blomfield, Evelyne Bourke (ex-BUPA CEO) and Harry Hurst (PIPE CEO).

With the country facing unprecedented waiting times for vital patient diagnostic testing, National MRI provides patients in the UK with quick, affordable diagnostic imaging services. Co-Founder and UK Managing Director, Jasper Nissim commented “It’s no secret that early diagnosis of many diseases, including cancer, leads to a better chance of survival. However, testing and diagnosis is a huge problem for the UK’s healthcare system, thanks to an insufficient number of CT and MRI scanners and record-breaking waiting times, worsened by the pandemic. 370,000 patients have waited 6+ weeks for one of 15 key diagnostic tests this August, which is a 780% increase since pre-pandemic (August, 2019).”

Founded in 2017 by Osteopath Jasper Nissim and Consultant Radiologist Khalid Latief, National MRI will use the funding to fuel its international expansion, launching in the USA and Germany under the SCAN.com brand name. The company is also working to build its B2B business model, targeting leading health insurance companies and new preventative services in the UK like FullBodyScan.com.

After bootstrapping to seven-digit revenue figures, the founding team, which also includes Charlie Bullock (CEO), Joe Daniels (Head of Front-End and UX) and Oliver Knight (COO), aims to make diagnostic imaging accessible and affordable to everyone around the world. National MRI allows patients to get a referral, pre consultation, scan, and post consultation in a week with a one-stop- shop platform.

Since launching in 2017 National MRI has grown to offer the largest number of private MRI scanners in the UK – with over 150 diagnostic centres nationwide on its platform. To date, over 20,000 patients have been scanned using National MRI. The platform presents an alternative solution to long NHS waitlists – relieving vital pressure on health service’s limited resources.

Commenting on the investment, lead investor Stephen Hampson, Investment Director, Oxford Capital added: “We’re proud to have backed National MRI at this early stage, there is a real need to transform healthcare services to address the long waiting times for those seeking a diagnosis or treatment. At Oxford Capital, we’re passionate about backing early stage companies in sectors in which the UK is considered a world leader and we’ve got a growing number of digital health companies in our portfolio. Co-founders Charlie and Oli and their team have already made huge strides to build the business and we’re looking forward to supporting them on their growth journey going forwards.”

Markus Feuerecker, Founding Partner YZR Capital also noted: “During our due diligence, the NMRI founding team demonstrated an excellent product and impressed us with their go-to-market speed and professional attitude, which is crucial in the healthcare market. As a Pan-European Health Tech focused firm with my Founding Partner colleague Prof. Dr. Reinhard Meier’s first-hand medical and telehealth expertise, we can effectively support NMRI on its growth journey. National MRI is an ideal match in terms of our common vision to improve the healthcare value chain, while creating social impact at the same time.”

National MRI is currently part of the Founders Factory accelerator program; where health insurance giant, Aviva, is the strategic partner for the FinTech sector. Henry Lane-Fox, CEO of Founders Factory added: “Our healthcare systems are reliant on having the right access to the right testing and tools but it is falling short of resources. National MRI is releasing some of the pressures on the NHS by enabling patients to book a scan at the widest selection of scanning centres at far lower prices than we’ve ever seen. They are changing the game by creating a platform that gets diagnostic testing and results done within a week, without breaking people’s purses. We’re thrilled to support this exciting digital health startup and help them scale”

 

Estimated reading time: 2 min

 

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  1. You could lose all the money you invest
    1. If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.
  2. You are unlikely to be protected if something goes wrong
    1. Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
    2. Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
  3. You won’t get your money back quickly
    1. Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
    2. The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
    3. If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.
  4. Don’t put all your eggs in one basket
    1. Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
    2. A good rule of thumb is not to invest more than 10% of your money in high-risk investments. https://www.fca.org.uk/investsmart/5-questions-ask-you-invest
  5. The value of your investment can be reduced
    1. The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
    2. These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

 

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.