Oxford Medical Simulation Secures $6.3M to Expand VR Clinical Training with AI

Oxford Medical Simulation, a London-based healthtech company specializing in virtual reality clinical training, has secured £5 million (approximately €5.78 million or $6.55 million USD) in growth financing from Salica Investments. The funding, announced on March 16, 2026, will be used to expand the company’s reach within US healthcare and academic institutions and to accelerate development of its AI-powered simulation tools.

Bridging the Clinical Skills Gap with Immersive Technology

Founded in 2017 by clinicians Michael Wallace and Dr. Jack Pottle, Oxford Medical Simulation addresses a critical need in healthcare education: preparing clinicians for real-world scenarios without risking patient safety. The company’s platform allows nurses, doctors, and allied health professionals to practice clinical skills, manage emergencies, and navigate difficult conversations in a virtual environment. This approach offers a repeatable, scalable alternative to traditional simulation centers, which can be costly and limited in capacity. A 2024 Series A announcement from the company cited a 74% reduction in staffing and equipment costs compared to traditional physical simulation methods.

The platform’s versatility is a key strength. It operates on both virtual reality headsets and standard computer screens, broadening accessibility. Crucially, OMS doesn’t just offer practice; it provides evidence-based feedback and performance analytics, enabling institutions to track the readiness of their entire workforce. Currently, the company delivers over 35,000 simulations each month to hospitals, health systems, and universities across the US, UK, and internationally.

AI-Driven Scenarios and the Future of Clinical Training

A significant portion of the fresh funding will be directed towards enhancing OMS’s AI capabilities. The company is developing AI-driven simulation scenarios, advanced learning analytics, and streamlined workflow tools. Recent advancements include the “Hands & Voice” product, which utilizes large language models to create more natural and responsive patient interactions. Instead of selecting options from a menu, learners can engage in free-form conversations with virtual patients, who respond with realistic emotions and physiological cues. This represents a shift towards more dynamic and immersive training experiences.

Beyond individual skill development, OMS also supports multiplayer scenarios, allowing clinicians in different locations to collaborate on virtual patient cases. This feature is particularly relevant in the context of increasingly distributed healthcare teams and the growing demand for remote care solutions. The ability to practice interprofessional communication and coordination in a safe, virtual setting could significantly improve patient outcomes.

Growth Financing vs. Equity: A Look at the Deal Structure

The £5 million investment from Salica Investments is structured as growth debt, rather than a traditional equity stake. Salica Investments, formerly known as Hambro Perks, operates a multi-fund structure focused on high-growth companies in the UK and Europe. Their Growth Debt Fund, currently raising a second fund targeting £150 million, provides senior secured loans to software and IP-rich businesses. This financing model allows OMS to access capital without diluting existing shareholder ownership. Usman Ali, Partner at Salica Investments, highlighted the company’s differentiated platform and its impact on clinical training, stating, “Oxford Medical Simulation is exactly the type of business we look to support…We are delighted to back OMS as they scale their impact across healthcare and education.”

Addressing a Critical Need: Nurse Preparedness and Workforce Shortages

The timing of this funding round is particularly noteworthy given the ongoing challenges facing the healthcare industry. Healthcare workforce shortages, coupled with high staff turnover rates, are placing immense pressure on existing clinical teams. A significant percentage of newly graduated nurses report feeling unprepared for the demands of clinical practice – OMS cites a figure of 91%. This lack of preparedness can contribute to increased stress, burnout, and potentially, medical errors.

OMS’s virtual reality simulations offer a potential solution by providing a safe and controlled environment for clinicians to hone their skills and build confidence. The platform’s ability to deliver consistent, standardized training can also facilitate to address inconsistencies in clinical practice and improve overall patient care. You can discover more information about the challenges facing the nursing workforce at the American Association of Critical-Care Nurses website.

Expansion into the US Market and Future Development

The company’s primary focus for this new funding is expansion within the US market. OMS has already established a US entity in Somerville, Massachusetts, reflecting the growing importance of its American customer base. The company plans to deepen its partnerships with US health systems and academic institutions, expanding the breadth and depth of its simulation content and enhancing its analytics capabilities.

This latest funding round follows a £10 million ($12.6 million) Series A raise in January 2024, led by Frog Capital. Prior to that, OMS secured £2.1 million in 2022. PitchBook estimates total funding to date at approximately $19.7 million.

What’s on the Horizon for Oxford Medical Simulation?

Looking ahead, Oxford Medical Simulation is poised to play an increasingly significant role in the evolution of clinical training. The company’s commitment to AI-driven innovation, coupled with its focus on addressing the critical needs of the healthcare industry, positions it for continued growth and success. Further development of its AI-powered scenarios, coupled with deeper integration of learning analytics, will likely be key areas of focus. The company will also need to navigate the evolving landscape of virtual reality technology and ensure its platform remains accessible and user-friendly for a wide range of clinicians and educators. The company is registered in England and Wales (Company No. 10587122).