SageTech Medical raises £2.5m led by South West Investment Fund
This article covers SageTech Medical, a healthtech startup that has raised £2.5m in a seed funding round to accelerate deployment of its waste anaesthetic gas capture and recycling system across the UK and selected European markets. The funding aims to support rollout to NHS hospitals and veterinary practices to reduce greenhouse gas emissions and lower workplace exposure for clinical staff.
SageTech Medical, a healthtech startup based in Paignton, has raised £2.5m in a seed funding round to accelerate deployment of its waste anaesthetic gas capture and recycling system across the UK and selected European markets. The money will be used to grow the team, strengthen operations and meet rising demand from veterinary practices and hospitals seeking lower emissions and improved workplace safety.
Why it matters
Operating theatre anaesthetic gases are a recognised source of greenhouse emissions and a workplace exposure risk for clinical staff. SageTech’s system targets both issues by capturing volatile anaesthetic agents before they are vented and enabling their recovery and reuse. For healthcare providers under tightening environmental regulation and sustainability targets, the solution offers a way to reduce emissions while reclaiming valuable agents that would otherwise be lost.
The funding is notable because it supports a commercial-stage device with deployments in NHS hospitals and veterinary clinics since 2019, signalling a shift from pilots to broader market rollout. Growing interest from large veterinary groups also suggests a clear commercial channel for faster adoption.
Inside the product
SageTech’s patented technology captures waste anaesthetic gases at source, then processes them so the anaesthetic agents can be recycled rather than released to atmosphere. In practice this means hospitals and veterinary clinics can lower emissions, cut the volume of purchased anaesthetic agents needed over time, and reduce staff exposure to vented gas.
The company was founded in Devon in 2015 by a small team of scientists and engineers. It has been supplying systems to NHS sites and veterinary providers since 2019 and is already present in selected European markets. These early customers provide clinical validation and a reference base that SageTech says it will leverage as it expands commercially.
Who are the investors?
The round is led by the South West Investment Fund, managed by The FSE Group, with backing from the British Business Bank.
In the announcement, Meg Salt, Investor at The FSE Group, said:
SageTech has developed an innovative solution to a significant environmental challenge in healthcare. The business combines strong technical expertise with growing commercial traction, particularly in the veterinary sector, and is well placed to benefit from increasing demand for more sustainable healthcare practices. We're pleased to support the company as it enters its next stage of growth.
In the announcement, Lizzy Upton, Investor at British Business Bank, said:
SageTech is a great example of the innovation taking place in the South West's life sciences sector, combining cutting-edge medical technology with a clear focus on sustainability. Life sciences is one of the priority sectors identified in the Government's Industrial Strategy, and this investment from the South West Investment Fund will help SageTech accelerate the adoption of its technology across healthcare settings in the UK and internationally.
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Founder perspective
In the announcement, Iain Menneer, CEO at SageTech, said:
We've developed a solution that not only helps healthcare providers reduce their environmental impact but, importantly, our innovative technology has the potential to significantly increase the safety of clinical staff by reducing work-based exposure to the vented gas. We're delighted to be working with The FSE Group and the South West Investment Fund as we continue to scale the business from our Devon headquarters.
Menneer framed the raise as a step from established clinical deployments towards wider commercial roll-out, with proceeds earmarked for hiring and operational scaling to meet pipeline demand.
The bigger picture
SageTech’s story sits at the intersection of several trends: tighter environmental rules for healthcare, increasing corporate sustainability targets among hospital groups and petcare chains, and a UK policy focus on life sciences as a priority sector. For healthtech startups offering operational or circular-economy solutions, commercial traction in veterinary markets can be an efficient route to scale because of shorter procurement cycles and consolidated buyers.
As the company expands internationally, its progress will be one to watch for anyone tracking how practical sustainability tech can translate into cost savings, regulatory compliance and improved workplace safety across healthcare settings in the UK and Europe.
They've invested in SageTech Medical
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