Business angel network Hotbed has invested £1.45 million of growth capital in HealthFund, a new private healthcare company.

Business angel network Hotbed has invested £1.45 million of growth capital in HealthFund, a new private healthcare company.

Hotbed says its investor members were attracted by HealthFund’s business model, which provides up to an 80 per cent saving on traditional health insurance premiums.

The venture also offers a medical helpline staffed by nurses and doctors, who arrange treatment for patients and settle their bills, as well as providing comprehensive advice and support.

Gary Robins, Hotbed CEO, said: “The UK private health insurance market receives £3.2 billion in annual premiums from almost six million people. With its high quality management team and strong business partners, HealthFund’s unique offering will take advantage of this vast market, addressing many customers’ concerns that private medical insurance offers poor value for money and a lack of clarity of cover.

“We believe there is potential for this deal to deliver a high return for our members. Potentially it would make a very attractive acquisition target in what has been a very active M&A market for private health insurance,” he added.