Sleep tech start-up SleepCogni has raised £1.4 million to scale the business to commercialise into the US market, with the potential to help over 70 million insomnia sufferers.
SleepCogni has developed a treatment for insomnia that allows users to control their wind down process using a handheld medical device and platform. In their recent clinical trial, SleepCogni’s device and therapy significantly reduced insomnia complaints compared to a placebo - users improved from Clinical Insomnia to Non-Clinical Insomnia within seven days.
Through a combination of debt and equity funding, SleepCogni exceeded their £1.1 million fundraising target - bringing their total investment to £3.2 million and company valuation to £7.3 million. This round has seen investment from new VC, Chasnay Capital Partners, SleepCogni’s existing investors and retail investors, together with loan funding from the UK's innovation agency, Innovate UK.
The new investment will be used to scale the business ready to commercialise. This involves preparing their medical device for volume manufacturing, development of the clinician and patient led online platform and achieving first sales.
Along with this raise, SleepCogni has strengthened the executive team with two executives in Colin Greene and Andrew Morfey.
Colin Greene, a former Apple executive for almost 15 years leading Apple’s US consumer business to multibillion revenues.
Greene said: “My north star is who I work with, and the level of enthusiasm, passion and desire to do great things at SleepCogni is outstanding. SleepCogni is a great example of hardware and software working together to have a truly life changing impact on patients.”
Andrew Morfey, a former finance director at AXA Health-On-Line who subsequently led AXA Health’s development of their £10 million wellbeing platform.
Morfey said: “SleepCogni is delivering a real, clinically viable, intervention to an extremely debilitating condition that effects millions worldwide. We all know someone who struggles with sleeping, and the impact on health, performance and relationships is very clear. The decisions to obtain clinical credibility, and to focus very clearly on delivering one solution at a time in an agile fashion really resonate with me as measures for success in this market.”
CEO Richard Mills added: “The two key milestones reached, the clinical trial results which have shown a significant improvement for chronic insomnia sufferers and FDA registration in the US, positioned us very well to achieve this fundraise. I am very thankful for the continued support from our existing investors and thrilled to announce a whole new list of new investors led by Chasnay Capital Partners who not only offer investment but provide ability and experience to achieve global scale.”
Chairman Richard di Benedetto said: “This investment will provide us with real life testing with sleep clinics in the US and UK, positioning us for first revenues and a larger fund raise in 2022-2023. We hope that over the next 12 months, we will expedite our business plan to meet the huge global demand for clinically proven therapies. Insomnia is a global epidemic, and our unique patented therapy promises a new clinically proven solution.”
