Augmedics, a pioneer in augmented reality surgical image guidance, announced today that it has raised $36 million in an over-subscribed Series C financing with an international syndicate of Israel-US investors. This comes only eight months after the company closed a $21 million Series B financing, bringing the total funding to date to $63 million.
H.I.G. Capital, Revival Healthcare Capital, and Almeda Ventures led this financing round and are joined by two strategic investors including HCA Healthcare Health Insight Capital, as well as existing investor XR Invest (formally known as AO Invest). With this financing Bruce Robertson (H.I.G.) and Rick Anderson (Revival) will join the board of Augmedics and Amir Blatt (Almeda) will join as a board observer.
In December 2019, Augmedics announced U.S. Food and Drug Administration (FDA) 510(k) clearance and the launch of its xvision Spine System (XVS) in the U.S., the first and only FDA-approved augmented reality surgical image guidance system. The xvision Spine System allows surgeons to visualize the 3D spinal anatomy of a patient during surgery as if they had “x-ray vision,” and to accurately navigate instruments and implants while looking directly at the patient, rather than a remote screen. The system is designed to revolutionize how surgery is performed by giving the surgeon better visualization, control, and accuracy.
Augmedics began sales of xvision Spine in the U.S. in the second half of 2020 and closed the year with over 250 spinal surgeries performed with the system. The financing round will be used by Augmedics to continue its commercialization throughout the U.S. and into OUS markets, develop the next generation of products, expand to new indications, and obtain CE certification for sales in Europe.
“We are very pleased to have completed this large financing round led by H.I.G. Capital, Revival Healthcare Capital, and Almeda Ventures, which will enable us to promote and expand our operations and meet the strong demand we are experiencing for our technology in the U.S. following our commercial launch last year,” said Nissan Elimelech, CEO and founder of Augmedics. “In this fundraising process, we could not have asked for stronger partners than H.I.G., Revival, and Almeda, who immediately recognized the enormous potential of Augmedics’ technology. We are also thrilled to hav two key strategic partners invest in the round, including HCA Healthcare, the leading U.S. healthcare system.”
“Augmedics is a commercial success story of integrating breakthrough medical technology into complex surgeries, a trend that we believe will only grow stronger,” said Bruce Robertson, Managing Director at H.I.G. Capital. “The significant volume of sales they had in a short period of time during the COVID-19 pandemic indicates the strong demand for the xvision system by spine surgeons. We are excited to be partnering with the company’s experienced leadership team, comprised of leading medical AR development professionals, experienced marketing and sales professionals, and a CEO who successfully led the company to success in a challenging year. This financing paves the way for continued growth and significant value creation.”
“Augmented reality is at the leading edge of medical technology innovation in navigation and digital surgery,” said Rick Anderson, Chairman and Managing Director of Revival Healthcare Capital. “The majority of spine and orthopedic procedures performed today are done without navigation and we have the opportunity to significantly improve outcomes for patients and physicians alike. The xvision Spine System may enable surgeons to be better, faster and more accurate, providing a significant runway for expansion in the currently approved indication and beyond. We are excited to partner with Nissan and his team to bring this revolutionary technology to surgeons around the world.”
Augmedics’ mission is to give surgeons more control by creating technological advances that cater to their needs and fit within their existing workflow. The company’s flagship xvision Spine System is designed to revolutionize surgery, as it gives surgeons the information they need, directly within their working field of sight, to instill technological confidence in the surgical workflow and help them do their jobs as effectively and safely as possible. The Augmedics xvision Spine System has now successfully launched and is being used in renowned hospitals and surgical centers in the U.S. to help surgeons confidently and efficiently care for patients. Augmedics plans to explore additional surgical applications for xvision beyond spinal surgery. The system’s small footprint, economical cost, and compatibility with current instrumentation is designed to allow easy integration into any surgical facility worldwide.
New Harbor Venture Partners acted as transaction advisors to Augmedics.