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Traditum & Mercia are delighted to announce a joint £850,000 investment in Sheffield based company Arquella, who have developed a cost effective and cutting edge app for the care home sector that eases red tape.
- The aged 60+ to increase 260% by 2050, with care staff in short supply
- Red tape main bugbear for care home staff*
- Funding to support sales growth in UK and overseas
Arquella, a Sheffield-based company that offers a unique ‘moment of care app’ which is designed to replace outdated and unintegrated pager and paper systems that much of the industry relies on, has secured £850,000 of investment funding to support further growth.
The investment comes from two entities – Leeds-based Traditum Private Equity and the Northern Powerhouse Investment Fund (NPIF) which is managed by Mercia Equity Finance which focusses on supporting businesses in Yorkshire, Humber and Tees Valley.
The funding coincides with a care sector study released only this month, which showed that 86% of respondents felt the industry was weighed down by red tape and that ‘vital aspects of care provision are suffering at the hands of outdated and time-consuming procedures, with many staff struggling to fulfil their day to day roles’.
Arquella’s unique technology provides a time efficient management system for care homes teams. It’s AIDA ‘Moment of Care’ App effectively replaces and digitises outdated and unintegrated pager and paper systems.
It integrates data through ‘touch of a button’, one of a kind, cloud-based tech to not only create and deliver planned care but to accurately record and monitor reactive care in real time, in line with the Care Quality Commission (CQC) standards.
This second round of funding will enable Arquella to continue to expand and target the rapidly expanding residential care home sector across the UK and Europe.
Founded in 2017, Arquella received funding of £350,000 from NPIF – Mercia Equity Finance in 2020 to enable them to develop the technology.
Iain Marlow, Head of Investment at Traditum, comments:
The investment in Arquella is the first from Traditum’s dedicated health technology team. Arquella have created a unique solution to the problem that faces the care sector, a single AI driven, integrated technology platform that automates activity to reduce administration, whilst providing management with information that exceeds CQC demands.
Steven Holmes, Commercial Director at Arquella, comments:
We built Arquella to resolve problems that we face as a society with a rapidly ageing population and increased demands on the care home sector. We know that the (UK) 60+ population will increase by 260% by 2050. Arquella has been designed to be at the forefront for creating solutions.
We are excited about our new partnership with Traditum, and are extremely proud to have received further funding from Mercia, who have supported us and enabled us to develop our proprietary technology.
To have our progress and vision recognised by such investors is a huge compliment. The new funds will enable us to scale more quickly by growing our sales and marketing activity and our international sales channels.
Traditum Private Equity enables flexible investments for clients and investee companies across sectors such as Healthtech, Sustainability and Agriculture. Taking a more traditional approach to investments, Traditum aligns experienced Investors with known sectors and businesses to add value to each transaction, applying a flexible, innovative and unique equity structures which are sympathetic to long term business planning.
Dan Thomas, Investment Manager at Mercia, comments:
Care homes are a fast growing market but the sector still relies largely on outdated technologies. Arquella’s next-generation systems offer huge potential to reduce the burden on carers and use data to improve safeguarding and efficiency. Having supported the Sheffield based company since 2020, we are delighted to welcome Traditum as a new investor. Mercia has been set up to invest in innovative business with a focus on Yorkshire, Humber and the Tees Valley.
Mick Morris of Compellor provided fundraising advice to Arquella on the latest investment. Andrew O’Mahony and Daniel Hayhurst of Brabners provided legal advice to Traditum. Jim Gribbon and Andy Sims of Venture Axis provided software diligence advice to Traditum.
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
Traditum is a UK based Private Equity house with a focus on long-term investment in UK based businesses. Our vision is to deliver investment value with longevity, building relationships with our clients and their families which spans generations. We partner with clients to provide tailored investment opportunities which reflect our team’s knowledge and experience of small and medium sized enterprises across the UK.
About Mercia Asset Management PLC
Mercia is a proactive, specialist asset manager focused on supporting regional SMEs to achieve their growth aspirations. Mercia provides capital across its four asset classes of balance sheet, venture, private equity and debt capital: the Group’s ‘Complete Connected Capital’. The Group initially nurtures businesses via its third-party funds under management, then over time Mercia can provide further funding to the most promising companies, by deploying direct investment follow-on capital from its own balance sheet.
The Group has a strong UK footprint through its regional offices, 19 university partnerships and extensive personal networks, providing it with access to high-quality deal flow. Mercia currently has c.£940million of assets under management and, since its IPO in December 2014, has invested c.£111million gross into its direct investment portfolio.
The Group raises its own Enterprise Investment Scheme (EIS) Funds and manages Venture Capital Trusts (VCTs) details about open offers can be found through Mercia’s website.
Mercia Asset Management PLC is quoted on AIM with the epic “MERC” and includes the following wholly owned subsidiaries –
- Mercia Fund Management Limited is authorised and regulated by the FCA under firm reference number 524856
- Enterprise Ventures Limited is authorised and regulated by the FCA under firm reference number 183363
- EV Business Loans Limited is authorised and regulated by the FCA under firm reference number 443560
About The Northern Powerhouse Investment Fund
- The Northern Powerhouse Investment Fund will invest in Microfinance, Business Loans and Equity Finance sub-funds which will offer financing ranging from £25,000 to £2m, specifically to help small and medium sized businesses secure the funding they need for growth and development.
- The Northern Powerhouse Investment Fund is operated by British Business Financial Services Limited, wholly owned by British Business Bank, the UK’s national economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity.
- The Northern Powerhouse Investment Fund is supported by the European Regional Development Fund, the European Investment Bank, the Department for Business, Energy and Industrial Strategy and British Business Finance Limited, a British Business Bank group company.
- The NPIF covers the following LEP areas: Tees Valley Combined Authority, Greater Manchester, Cheshire and Warrington, Cumbria, Liverpool City Region, Lancashire, Hull and East Yorkshire, Leeds City Region, Sheffield City Region, and York & North Yorkshire
- The project is receiving up to £140,359,192 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Department for Communities and Local Government is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit https://www.gov.uk/european-growth-funding.
- The funds in which Northern Powerhouse Investment Fund invests are open to businesses with material operations, or planning to open material operations, in, Yorkshire and the Humber, the North West and Tees Valley.
- The British Business Bank has published the Business Finance Guide (in partnership with the ICAEW, and a further 21 business and finance organisations). The guide, which impartially sets out the range finance options available to businesses and provides links to support available at a regional level, is available at www.thebusinessfinanceguide.co.uk/bbb
*Cutting Red Tape – Review of adult social care – residential and nursing home sector – Findings published 3rd March 2022