US-based medical research startup ImThera secured an initial $4m of series C funding from medical device company and epilepsy research specialist Cyberonics on Wednesday.
The investment could potentially reach $12m if preset clinical and regulatory milestones are met. ImThera expects to raise a further $4m from existing private investors, bringing the round to $16m.
ImThera raised $3m from investors, in March 2008, including Spencer Trask Ventures, followed by an additional $5m from private investors between 2008 and May 2011.
ImThera is developing an implantable neurostimulation device to treat obstructive sleep apnea (OSA). ImThera is pursuing regulatory approval in the European Union for the device and is looking to conduct clinical trials in the US in the future.
Dan Moore, chief executive officer of Cyberonics, said: "OSA affects millions of people in the US and around the world. We are excited about the opportunity to invest in a promising new therapeutic neurostimulation technology outside our core business."