IP Group has returned for a series B round raised by Ieso Digital Health, having initially acquired stakes in the business through its purchase of Touchstone.
Ieso Digital Health, a UK-based digital therapeutics platform, closed a £39m ($53m) series B round yesterday featuring commercialisation firm IP Group.
Morningside led the round, while Sony Innovation Fund, a corporate venturing vehicle for conglomerate Sony, Molten Ventures and Ananda Impact Ventures also participated.
Founded in 2000, Ieso Digital Health has developed artificial intelligence (AI)-equipped digital assessment tools and therapeutics to provide treatment for mental health afflictions such as anxiety and depression.
The company is also seeking regulatory approval for its autonomous digital tools in the UK and the US, and will use some of the series B capital to build a commercial team stateside. Ieso will also drive further growth in the UK, where its partners already include the National Health Service (NHS).
Stephen Bruso will take a seat on Ieso’s board of directors on behalf of Morningside Ventures.
Nigel Pitchford, chief executive of Ieso, said: “At Ieso, we are looking to transform global mental health by unlocking the power of clinical data to develop AI-enabled digital therapeutics.
“Our experience delivering outstanding mental health care within the NHS ideally places us for starting to tackle this challenge. A new generation of clinically-validated digital mental health care products could ultimately improve millions of lives.
“But we cannot do this alone, and look forward to working with our patients, clinicians, investors, as well as existing and future partners, to better serve those who require mental health support.”
A regulatory filing indicates Ieso Digital Health had raised nearly £31m by the end of 2019, although details on the company’s historical funding are sparse.
Touchstone Innovations, subsequently acquired by IP Group, co-led a $20m round in 2017 together with Draper Esprit that may have included Ananda Social Venture Fund and assorted angel investors. Touchstone had first invested an undisclosed amount in 2013.
