Patient Care

If you were a start-up looking for the perfect proving ground for radio frequency identification (RFID) technology, you couldn't hope for a better fit than the UK healthcare sector. There are around 170 NHS hospitals, most of which are currently putting in the wireless LAN infrastructure to support key medical applications.

'It gives you confirmation that other people see the business as valuable,'

This helps explain why Airetrak CEO Roger Willmott hit on the idea of building a real-time location system (RTLS) for the NHS. 'We were initially looking at RFID in general, and there are three main sectors where it's being used in anger and delivering real benefits - manufacturing, logistics and healthcare,' he says. The logistics industry is fairly mature in its adoption of the technology and the manufacturing sector is complex, with almost every business facing unique challenges. Healthcare, by contrast, presents a simpler, relatively untapped opportunity.

Most hospitals have a real and pressing need to locate key medical equipment, which is where the Airetrak solution comes into its own. By combining new wireless LAN based RFID tags, with the hospital wireless LAN infrastructure, it is possible to locate key assets and resources to meters within the hospital.

Like many businesses, Airetrak is taking a cautious, step-by-step approach to what is potentially a huge opportunity. Having started his company in 2005 and developed the initial system under his own steam, Willmott has partnered with leading wireless networking equipment provider Cisco, and is now working with Cisco's partners in the UK. Last year he turned down the chance to bring in VC funding in favour of investment from private investors and angels - and he has pretty much ruled out such a move until the company proves itself and turns a profit.

Tapping into a technology revolution

A technology consultant by background, Willmott was previously involved in another technology venture that mirrors the opportunity presented by RFID. After seven years at Andersen Consulting, he joined Sky TV and developed much of the networking and security infrastructure behind what is now Sky Interactive. The application of new technology to an existing infrastructure - in this case interactive services to Sky's digital and satellite TV platform - mirrors the use of RFID in hospitals, but this time round Willmott has the opportunity to make hospitals more efficient and, potentially, help save lives.

The company has developed a RTLS software product called ResourceView that uses wireless technology to locate battery-powered RFID tags and other wireless devices such as PDAs, laptops, phones or computers. The product certainly has potential for NHS hospitals. Typically operating on a large campus, with geographically dispersed buildings and wards, they have a lot of equipment - estimates say an average of 10,000 assets - moving around at any one time. These can range from mechanical and electrical devices such as infusion pumps and cardio monitors to physical assets such as beds, wheelchairs and mattresses. All these assets need to be in the right place at the right time and an emergency, located at short notice.

In addition, assets frequently go missing, which is a major cause for concern. 'It causes problems in terms of patient care but also cost effectiveness,' says Willmott. 'If you're not maximising the value of an asset, you could end up buying or renting more equipment.'

The issue is coming to a head just as hospitals are starting to implement the perfect infrastructure to help locate their equipment - wireless LANs. These are being put in across hospital campuses for a number of reasons, but perhaps the most pressing is the move to electronic records, which require a wireless infrastructure to provide access to patient records from the patient bedside.

Working closely with a number of hospitals, Airetrak realised they not only wanted to track where a device is located, but also to produce reports on equipment utilisation and generate alerts if an asset moves out of a predefined area, perhaps because it's been stolen. 'The tags are beaconing every two minutes and so you can track where they have been over long periods of time,' explains Willmott. 'We put all that historical information in a database and it provides valuable information on utilisation, where things are and how they are being used.'

Funding story

While Willmott always believed he had a good business idea, further validation came from two additional sources when Airetrak began looking for funding. Firstly, Roger went through the gateway2investment workshops and gained further insight into the investment process and exposure to the VC community. Subsequently in Cambridge, where it also has some operations, it was one of six winners of an investment competition last November 'It gives you confirmation that other people see the business as valuable,' Willmott says.

Despite being offered VC funding, however, he decided against it, opting instead to complete a first funding round in March with family and friends and a small number of angel investors. 'I was open at the beginning, but the more it went on, and we got angel investors interested, I really saw the benefits of private investors at this stage of the business development. As I talked and networked, what I heard was you could lose control when the VC gets involved and that was something I wanted to avoid right now.' What he now has is a mix of active and passive investors. The key, he says, is extending out your network and being open to all options. 'I've got some quality investors I've never met before who came through friends of friends. It just takes time and perseverance.'

He adds that the g2i programme was helpful in giving a thorough overview of all aspects of the investment process, from writing a business plan to handling legal and commercial issues, contracts and IP rights. 'Some of it you know, some of it you thought you knew, but you always learn. It's good to talk to experienced people who've been through it already, and also talk to your peers who are going through the process with you and to get their thoughts and experiences.'

Getting in front of the VC community was also a valuable experience. 'Even though we didn't go for VC funding in this round, through the g2i process we did get introduced to quite a few VCs and got our name out in the market. If we go for VC funding in a year or two's time, we've got a good track record. People have seen us already and they've seen us progress. So to them it's going to feel like a lot safer option.' He adds that he wants to become established and make a profit before he does look for a next round of funding, putting the business in a stronger position with investors.

Cautious growth

As to future growth prospects, Airetrak is still taking a cautious approach. While Willmott handles sales himself with part-time help and encourages partners to bring in leads, the company is currently hiring developers to further extend the product. Willmott is keen to tie people into the company in different ways - not just by hiring them. 'My philosophy is to get as many people involved as I can working for the company in whatever capacity, whether it be full-time, part time or some other means, because it helps you network out. It's sometimes beneficial to bring people in as you need them, for testing or documentation, for example. Otherwise [if they are employed full-time] they work hard when they're doing a particular project, but other times they are not working as hard.'

That caution is reflected throughout the business - from funding, through recruitment, to sales and marketing. If it presents a counterpoint to the crash-and-burn philosophy of some VC-backed start-ups, it's perhaps a reflection of Willmott's earlier experience as CTO of Buy.com's UK operation, which was eventually sold to John Lewis just as the dot com bubble burst. 'We went through the dotcom bubble and managed to get out safely and do reasonably well out of it,' says Willmott, with the air of a man who doesn't care to experience that level of excitement a second time round.

Roger Willmott was talking to David Longworth of Webster Buchanan

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