Oxford’s Optellum completes $14m Series A funding round

Optellum, an Oxford-based medtech company which provides an AI platform to diagnose and treat early-stage lung cancer, has completed its Series A funding round, raising $14 million.

The company will use the investment to scale its base, operations and commercial launches in the UK and USA.

The funds will also be used to speed up its research and development, widen its platform into tailored therapy decisions, integrating imaging with molecular data, robotics, and liquid biopsies.

Mercia led the funding round, with additional investors Intuitive Ventures and Black Opal Ventures, both from the United States. The firm also secured further funding from existing investors St John’s College in the University of Oxford, IQ Capital, and the family office of Sir Martin & Lady Audrey Wood.

Lung cancer is the most common type of cancer and the leading cause of cancer deaths in the world. Around 34,800 people in the UK and 1.8 million people worldwide die from lung cancer each year.

The current worldwide five-year survival rate is 20 per cent, primarily because most patients are diagnosed after symptoms have appeared and the disease has reached an advanced stage (Stage III or IV). In contrast, the survival rate for small tumours treated at Stage 1A is up to 90 per cent. A disparity which highlights the need for early diagnosis and treatment.

Optellum is currently the only medtech company to have attained FDA clearance, CE-MDR in the EU and UKCA in the UK for its AI-enabled lung cancer diagnosis software platform, Virtual Node Clinic.

The innovative platform can help physicians identify and track at-risk patients and optimally diagnose the signs of lung cancer early, allowing treatment to start sooner for patients with tumours, and invasive procedures such as biopsies on benign lesions are minimized.

Jason Pesterfield, CEO at Optellum, said: “With this strong support and commitment of highly specialized investors, we are positioned to accelerate commercial deployment in both the UK and the United States to expand our installed base.

“Following years of research and clinical trials that have shown the impact of our software on the diagnosis of at-risk lung nodules, we’re focused on expanding patient access to this crucial technology and identifying deadly lung cancer faster in more at-risk people. The funding will also boost our research and development with world-leading institutions and partners to progress further innovation.”

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Lead investor Mercia brings expertise in software technologies having a significant impact on global health issues. Its existing portfolio includes AI and machine-learning technology.

Investment Director at Mercia, Stephen Johnson, said: “Optellum is the latest in a series of companies to channel research from the UK’s world-leading universities into commercially viable products which can make a difference to the provision of medical care.

“Having observed Optellum achieve great milestones over the years – we are now excited to become part of their success and apply our experience with scaling up software and deeptech companies to help accelerate Optellum’s impact on patient lives across the world.”

Intuitive Ventures, the independent venture capital arm of Intuitive, is a world leader in medical robotics, including lung cancer care. The investment team support Optellum’s ambitions progress beyond earlier diagnosis into decision support across the treatment pathway, integrating liquid biopsies, molecular tests, and drug therapies.

Oliver Keown, MD, Managing Director of Intuitive Ventures, said: “Lung cancer is an urgent public health crisis and Optellum’s groundbreaking approach utilizing AI to accelerate early detection and intervention may fundamentally alter the healthcare community’s approach to combating this disease.

“Optellum is uniquely positioned to align and provide considerable value to patients, providers, and payors alike. Intuitive Ventures is thrilled to provide our full arsenal of financial and strategic support to Optellum as we work towards a world of better outcomes for cancer patients.”

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