Breaking Free Online’s Strategic Investment Transforms Addiction Treatment and Fuels Digital Health Tech Innovation
The Challenge
Breaking Free Online sought to address the global challenge of substance misuse by leveraging technology to deliver accessible and effective treatment. As an early innovator in digital health, Breaking Free Online faced a twofold challenge: securing funding in a risk-averse healthcare landscape and charting a course for rapid growth in a nascent market.
The Solution
Breaking Free Online was co-founded in 2010 by two clinical psychologists, Dr Jonathan Ward and Dr Lloyd Humphreys (exited in 2013), who developed an evidence-based and user-friendly platform providing cognitive behavioural therapy (CBT) for substance use disorders. This innovative approach offered a 24/7 solution to help break down barriers to accessing treatment.
Midven’s Impact
For Dr Ward, Midven’s investment and strategic guidance were essential to Breaking Free Online’s impressive growth trajectory and successful exit.
Early-Stage Confidence
Midven recognised the potential of Breaking Free Online and its founders’ expertise, providing crucial seed funding that enabled the company to launch its digital platform and establish a strong foundation.
Strategic Growth Partner
Midven’s support went beyond financial investment. They acted as a true partner, offering mentorship, strategic guidance, and a sounding board for ideas. Crucially, Midven fostered a culture of trust and learning, allowing the founders to experiment, adapt, and even make mistakes along the way. This freedom to innovate, coupled with Midven’s supportive guidance, proved invaluable as Breaking Free Online navigated the challenges of a growing business.
Fuelling Innovation and Expansion
Midven’s continued investment was instrumental in driving Breaking Free Online’s expansion and innovation:
Unlocking the Prison Market
Breaking Free Online used Midven’s investment to successfully develop a specialised version of its platform for the prison environment. This strategic move opened a significant new market in the UK and demonstrated the platform’s adaptability to unique settings. This success laid the groundwork for further expansion into prison systems in the US, showcasing the company’s ability to address the needs of diverse populations.
Expanding into North America
Breaking Free Online’s entry into Canada was achieved through large-scale contracts with provincial governments, demonstrating the company’s ability to navigate different healthcare systems. In the US, the company used strategic channel partnerships to accelerate its growth and impact.
Championing Clinical Research
Midven understood the importance of investing in clinical research to build credibility and demonstrate the efficacy of Breaking Free Online’s solution. They recognised that peer-reviewed research, while resource-intensive, was crucial for establishing trust with healthcare providers and government agencies, ultimately enabling the partnerships that fuelled the company’s growth.
Strengthening Financial Expertise
Midven played a key role in recruiting a skilled Finance Director, providing Breaking Free Online with vital financial leadership and strategic insights.
Key Outcomes
Successful and Efficient Exit
The company’s strong growth trajectory and strategic positioning, fuelled by Midven’s support, led to a swift and successful acquisition by a publicly-listed Canadian company, LifeWorks, with the end-to-end sale process completed in just seven months.
Exceptional Returns
Midven received a 19x return on their investment in Breaking Free Online, and the sale price represented a 44x multiple in total, demonstrating the potential for significant financial success in the digital health sector.
Rapid Growth and Impact
With a streamlined team of only 11 people, Breaking Free Online achieved remarkable growth, supporting tens of thousands of individuals struggling with problem drinking and substance use.
Navigating Challenges
Breaking Free Online faced numerous challenges in its journey, but with Midven’s support and the founders’ resilience, the company consistently overcame obstacles, continued to innovate, and emerged stronger.
The Value of Midven’s Partnership
“Beyond their investment, Midven’s guidance and support at every stage of our journey was crucial to the successful exit we ultimately achieved,” says Dr Jonathan Ward, co-founder of Breaking Free Online. “This ranged from their belief in the potential of our innovative solution and the expertise of our team, to their patience, understanding and trust in our vision while we figured out how to accelerate our growth through opening up major scale opportunities in Canada and the US, right through to introducing us to the optimal M&A advisors for generating competitive tension in the sale process.”
Conclusion
Breaking Free Online’s journey exemplifies the transformative power of digital health solutions in addressing critical healthcare challenges. Through its innovative platform and commitment to clinical excellence, Breaking Free Online has empowered tens of thousands of individuals on their path to recovery from alcohol and drug dependence. Midven’s support enabled Breaking Free Online to overcome challenges, expand its reach, and ultimately achieve a successful exit that delivered exceptional returns. This case study showcases the impact of a visionary company, backed by a committed investment partner, in driving positive change within the healthcare landscape.