Parkwalk have invested alongside Longwall Ventures, IP Group, Scottish Enterprise and various members of the management team in this tranched Series ‘B’ round into Mode DX, a spin-out from the University of Glasgow.
Management hope the company will reach cash break-even in year three following this investment. The second tranche will be drawn down after some milestones have been achieved which is likely before the end of 2014.
The Company
Mode DX aims to provide high quality health and wellness products that empower the consumer to test and understand their medical options with future-proofed products in EU, US and Chinese markets. These markets represent the fastest growing segment of the $31bn In Vitro Diagnostics (IVD) market.
The Company’s future products will interface with smart phones and access web content to augment and give context to test results, increasing both uptake and compliance.
The Opportunity
Mode DX has novel IP which will produce point of care diagnostics in a fast expanding consumer market. The institutional investors alongside Parkwalk in this round are experienced in this asset class and well funded.
They have put together a management team vastly experienced in developing diagnostics companies with backgrounds at some of the leading players in this space. The Diagnostics industry is predicated on M&A and once sales traction is established a trade exit is often a typical route. However the public markets may in a few years time provide a viable alternative exit strategy.
This funding round will allow Mode DX to exploit a number of commercial opportunities including those with a UK based insurance company, a leading UK pharmacy chain and potentially sales into the German market through a distributor.
