Mental health and wellbeing technology company Frog Systems has today hailed its latest funding round generating £846,000, and said it is looking to go to the market to raise further capital in 2022.
The Glasgow-based tech firm – which is chaired by business veteran Nick Kuenssberg – said the lion’s share (£500,000) came from majority shareholder Aldridge Capital.
The latest capital raise was also opened up to members of staff as well as existing shareholders, with shares priced at a 10 per cent premium over a previous round of about £500,000 at the start of the year, and 85 per cent of staff subscribed for shares for the first time.
The business said the capital raise allows for an increase in its share options pool that will ensure that every current and future member of staff “has a vested interest in the company’s future,” adding that the funds will help increase recruitment and move to the next stage of product development.
Mr Kuenssberg said: “We have spent the past year building a very strong and experienced management team, recruiting some exceptional talent, and successfully taking our wellbeing software Ashia to market where we now work with a wide range of blue-chip organisations across multiple sectors.
“The board is confident that we are now blazing a unique trail in the ‘welltech’ market. The fact that staff have been so supportive of this capital subscription demonstrates the personal faith they have in the company and its future,” added the businessman, a former chairman of Glasgow cloud computing firm Iomart who has served as a director of companies including Standard Life Assurance, Scottish Power and Dawson International.
Frog Systems says its “innovative” digital approach, combining “lived experience” video with hyper-local support and resources on a single page to generate anonymised data that tracks wellbeing issues, is being used by a growing number of companies and communities across the UK.
The company said it “has a strong pipeline of commercial opportunities and plans to go to the market to raise funds to further accelerate growth early next summer”.
Chief executive Phil Worms commented: “We are particularly delighted with the enthusiasm of our team for what we are trying to achieve at Frog Systems. Our employees are as invested in us as we are in them, and together we are committed to a long-term vision of giving people purpose to improve outcomes in their lives through the wellbeing platforms we build.”
Frog Systems was founded in 2015 and launched its welltech software to the commercial market in 2019. It now has 20 staff, and earlier this year it took on four young graduates through the Kickstart scheme, “all of whom have been, or are about to be, given permanent roles”.
Other milestones include being named winning start-up at the 2020 Startup Summit, organised by FutureX. This year, for example, has seen it team up with Glasgow-based equipment hire company GAP Group to launch what was billed as the industry’s first mental health and wellbeing platform.
Source: The Scotsman