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NeoGuide Raises $25M For Colonoscopy Technology
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(Los Gatos CA) - September 27, 2006 -- NeoGuide Systems Inc., developer of a 3-D colonoscopy technology,expects to reach profitability in two years thanks to a new $25 million Series C funding from its venture capital investors, company co-founder and President Amir Belson told VentureWire.
New investor London-based Advent Venture Partners led the Series C round. New investor Rockport Venture Partners also participated in the round. Other participants in the round included Versant Ventures, Utah Ventures, 3i Group, Kaiser Permanente Ventures, Arboretum Ventures, SBV Venture Partners and The Angels Forum/Halo Fund.
Los Gatos, Calif.-based NeoGuide is the developer of a computer-assisted colonoscopy technology. NeoGuide aims to prevent looping,a condition resulting from the use of traditional colonoscopes and involves colon displacement and stretching of the surrounding tissue. NeoGuide's technology provides a three-dimensional map of the colon and allows for continuous shaping of the insertion tube.
"We believe we are going to change the way that colonoscopy is done," Belson said. Ultimately, the company plans to be a stand alone, he said, though he declined to comment on specific potential exit plans. Founded in 2000, NeoGuide currently has 48 employees.
With the Series C funding, NeoGuide plans to fund the commercialization of its endoscopy system in the U.S., including manufacturing, sales and service efforts. NeoGuide is scheduled to launch its lead product targeting the gastroenterologist market in the first half of 2007. The company is also looking into ways its platform technology can be used for other markets.
NeoGuide previously raised a $14 million Series B round in December 2003, which was led by Utah Ventures. Other investors included Versant, The Angels' Forum, 3i, DC Capital, Arboretum and SBV. The company raised $3.5 million in Series A funding in August 2001 which was led by Versant and included the participation of Angels Forum/Halo Fund.
Versant Ventures Managing Director and Founder Beckie Robertson, whose fund invested $2 million in NeoGuide's Series C, said she wasattracted to the investment because it altered a flawed colonoscopy process, which was becoming a standard of care for patients. Versant invested in the company out of its $250 million Versant Ventures I LP, and has invested about $7 million in the company to date.
Utah Ventures General Partner Allan Wolfe said the firm invested $3.2 million in the Series C round and, before that, $3.7 million in the Series B round. The investment came out of Utah Ventures III
LP.
"We tend to make investments in early stage medical technology deals where we think there is a really significant contribution the company can make that is not available anywhere else," Wolfe said. Utah Ventures invests in both life sciences and information technology.
www.neoguidesystems.com
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