US-based neuromodulation system developer Neuros Medical secured $20m in series AA financing from investors including medical device producer Boston Scientific yesterday.
The round was led by venture capital firm US Venture Partners (USVP) and included healthcare-focused investment firm Aperture Venture Partners, academic research commercialisation VC firm Osage University Partners and accelerator JumpStart.
Neuros is developing products based on its core technology, an implantable generator called the Altius High Frequency Electrical Nerve Block.
Altius uses a rechargeable battery, cuff electrode and compatible external devices to combat chronic pain caused by conditions such as amputation, post-surgical pain, migraines or trigeminal neuralgia, which affects a patient’s face.
Proceeds from the round will be used to complete a pivotal investigational device exemption trial for Altius as Neuros works towards getting pre-market approval from the US Food & Drug Administration for the system.
Alan Kaganov, a partner at USVP, has been appointed chairman of Neuros and will be joined on the company’s board of directors by Casey Tansey, also of USVP, as well as Tony Natale from Aperture Venture Partners and Bill Harrington of Osage University Partners.
Neuros had previously raised $3.5m in a series A round co-led by Boston Scientific and early-stage investment firm Glengary that closed in 2012.
Case Tech Ventures, JumpStart, NorthCoast Angel Fund, Ohio Tech Angel Fund, Queen City Angel Fund III, Physician Investment Group, RiverVest Venture Partners, Blue Tree Allied Angels and ModelVest also took part in the series A round.
JumpStart and Case Technology Ventures, the VC fund for Case Western Reserve University, had already supplied $375,000 in funding for Neuros in 2009.
Dr Kevin Kilgore and Dr Niloy Bhadra created the company’s technology at Case Western Reserve University’s Department of Biomedical Engineering and MetroHealth Medical Center.
– Photo courtesy of Neuros Medical, Inc.