The funding for the Eurocentral-headquartered company will be used to continue clinical trials of its biosensor technology that monitors potential fatal respiratory changes.

The round comprises £5.2m equity from new investors Scottish National Investment Bank, alongside £2.3m from existing investors Scottish Enterprise, IIG, Equity Gap, Alba Equity and London and Scottish Investment Partners.

Boston-based life science investor Mark Bamforth of Thairm Bio also joined the round as PneumoWave prepares to ramp up its US operations. PneumoWave’s technology is being developed as part of an international research program in collaboration with the University of Dundee, University of Glasgow, King’s College London, and NRCH and Department of Health in Victoria, Australia.

A former forensic medical examiner, Dr Bruce Henderson, PneumoWave CEO, said: “We are delighted to close this round and thank both our existing investors and the Scottish National Investment Bank for their support. We are now aiming to have our technology ready to submit to the medical regulators in early 2024.

“We believe our platform will provide an invaluable tool for increasing the effectiveness of treating a broad range of respiratory disorders. This investment also allows us to move to larger premises here at Eurocentral and we will increase the team size from 18 to around 35, as we look to expansion overseas.”

Paul Callaghan, director innovation, at the Scottish National Investment Bank, added: “The Bank’s support for PneumoWave will help their aim of being able to remotely diagnose and monitor high-risk patients with respiratory conditions.

“This commercial investment has the potential to positively impact significant public health issues in this country and beyond.”

Kerry Sharp, director, entrepreneurship and investment, Scottish Enterprise, said: “Supporting fast growing, innovative companies is a fundamental priority for Scottish Enterprise, and PneumoWave are a fantastic example of how Scotland’s supportive ecosystem can help ambitious early stage companies.

“This investment builds on early-stage investment support received from a number of investors, including Scottish Enterprise, and will enable Pneumowave to continue with their impressive development and company growth.”

Robert Naylor, CEO of Intuitive Investments Group, added: “We strongly believe healthcare providers will adopt PneumoWave’s integrated platform of patient data capture and proprietary analysis, which will transform the way patients with respiratory conditions manage their health and live their lives.

“The funding round with high quality investors, given market conditions, is testament to the quality of PenumoWave’s business.”

Fraser Lusty, director at Equity Gap, said: “Equity Gap investors are delighted to continue our support of Pneumowave in conjunction with SNIB investment participation for the first time.

“PneumoWave are scaling up their commercial deployment significantly in 2023 and their market leading proprietary technology and data capture will increase efficiency and reduce data burden for clinicians.”

Mark Bamforth of Thairm Bio, concluded: “This is a great opportunity to support the PneumoWave team to bring their platform to the US to help deliver more effective treatment programmes for both opioid use and general respiratory disorders.”

PneumoWave was advised throughout by Ascendant Corporate Finance and DCS Legal.