Digital Pulse: Healthcare Innovation Heats Up with Over $1 Billion Raised

This edition of Digital Pulse highlights a surge in healthcare investment activity, with over $1 billion raised across various sectors. Here's a glimpse at the top deals:

• Fintech: PayZen ($232M) leads the pack with AI-powered healthcare affordability solutions.
• Surgical Technology: Caresyntax ($180M) secures funding to expand its vendor-neutral precision surgery platform.
• Non-invasive Treatment: HistoSonics, Inc. ($102M) advances its focused ultrasound platform for tissue and tumor ablation.
• Medical Device Innovation: Neptune Medical spins out Jupiter Endovascular ($97M) to focus on gastrointestinal and endovascular fields.
• AI-powered Solutions: Levels ($10M) expands its metabolic health app, while Guardoc Health ($3M) leverages AI to identify errors in electronic health records.

The funding frenzy extends beyond these top deals, with investments in areas like:

• Early Cancer Detection: Earli Inc. receives undisclosed funding for its novel cancer-targeting technology.
• Electronic Prescriptions: Photon Health secures $9 million to grow its platform.
• Pharmacy Benefits: RxSaveCard raises $1.7 million for its pharmacy benefit solution.
• Medical Device Development: Prana Thoracic receives undisclosed funding to advance its minimally invasive surgical solutions.
• Mental Health Programs: CuraLinc Healthcare secures undisclosed investment for its employee assistance programs.

Venture capital firms are also taking notice, with Foresite Capital raising $900 million for an AI-focused healthcare fund and Create Health Ventures closing its $21 million fund for early-stage digital health startups.

PayZen , a San Francisco-based fintech company focused on healthcare affordability with AI-powered solutions, raised $232 million in Series B funding led by NEA. Existing investors, such as 7wireVentures, SignalFire, and Viola Ventures, participated. The funds will be used for growth and market expansion.

Caresyntax , a San Francisco-based company providing a vendor-neutral precision surgery platform, has raised $180 million in Series C funding. This financing round is structured with $80 million in equity and up to $100 million in growth debt facility. Diverse investors backed the funding, including Symbiotic Capital, MTIP AG, BIONIQ Capital, and several other prominent firms. Caresyntax plans to use the newly acquired funds to expand its operations and enhance its development efforts. The company's platform aims to improve surgical outcomes through advanced technology.

HistoSonics, Inc. , a Minneapolis-based medical device company, has secured $102 million in Series D financing. The round was led by Alpha Wave Ventures, with participation from new and existing investors. HistoSonics specializes in the Edison? Histotripsy System and novel histotripsy therapy platforms, which use focused ultrasound to destroy unwanted tissue and tumors non-invasively. The company, led by President & CEO Mike Blue, is commercializing the Edison System for liver treatment in the US and select global markets while exploring applications for other organs. The funding will accelerate platform advancements, support commercial growth, and initiate the BOOMBOX Master Study to evaluate the Edison System for liver tumor treatment. The Edison System received FDA De Novo clearance in October 2023. HistoSonics is collaborating with leading institutions to develop multi-disciplinary histotripsy liver programs. The company maintains offices in Ann Arbor, Michigan, and Minneapolis, Minnesota.

Neptune Medical , a Burlingame-based medical device innovator, has successfully spun out its subsidiary, Jupiter Endovascular, following a substantial $97 million Series D financing round. Key investors in this round included Sonder Capital Olympus Corporation of the Americas and other existing and new investors. The funding will serve two main purposes: strengthening Neptune Medical's position as a gastrointestinal-focused company, with plans to expand into robotics for GI diseases (underscored by the appointment of medical robotics pioneer Dr. Fred Moll as Chairman of the Board), and enabling Jupiter Endovascular to concentrate on developing its innovative endovascular technology platform. This strategic move and significant funding highlight Neptune Medical's commitment to advancing medical technology in gastrointestinal and endovascular fields.

Moximed , a Fremont, CA-based medical device company focused on improving care for knee osteoarthritis, closed a $61 million Series D financing with the option to raise an additional $30 million. The round was led by Elevage Medical Technologies, with participation from new investors such as Cormorant Asset Management and Warren Point Capital and existing investors. The funds will accelerate the U.S. commercialization of its MISHA? Knee System, an implantable shock absorber for knee osteoarthritis.

Jupiter Endovascular , a medical technology startup based in Menlo Park, California, has emerged from stealth mode with a substantial $21 million funding round. Sonder Capital played a leading role in the financing, which also saw participation from multiple strategic investors. The company plans to use this capital to fund its upcoming pivotal trial for Pulmonary Embolism and further develop additional clinical applications of its Endoportal Control? technology. This funding marks a significant milestone for Jupiter Endovascular as it transitions from stealth mode to actively advancing its medical innovations in the endovascular space.

Hexarad , a London-based radiology technology company, raised ￡13M in growth funding, led by MTIP and with participation from Foresight Group. The company plans to use the funds to expand its operations and development efforts.

MolecuLight , a Toronto-based point-of-care fluorescence imaging company, raised $11.7M in Series C funding, led by Export Development Canada (EDC), Prosegur, and Azahar, with participation from existing investors. The company will use the funds to expand its reach and provide clinicians with tools to identify and quantify wound bacteria, ultimately improving patient outcomes.

Levels Raises $10m Series A Extension from Community, Long Journey, and a16z to Fund More Accessible Metabolic Health App - With fast AI-powered meal tracking, community glucose, and personalized insights, the Levels app helps more people achieve optimal metabolic health.

Photon Health , a New York City-based startup, secured $9 million in funding to expand its electronic prescription platform. The investment round was led by Notation Capital and Flare Capital Partners, with participation from other venture capital firms and angel investors with experience in the healthcare industry. Photon plans to use the funds to grow its operations and reach more customers.

Kano Therapeutics , a Cambridge, MA-based biotech firm specializing in single-stranded DNA (ssDNA) for gene insertions, secured $5 million in Seed funding, bringing its total funding to $7.1 million. The round was spearheaded by The Engine Ventures and VSquared Ventures, with additional support from Taihill Venture and Metaplanet. The company plans to allocate these funds towards developing good laboratory practice (GLP) standards, establishing a process for producing clinical-grade kilobase ssDNA, and advancing internal and collaborative drug development programs.

PLAIO - Digitalised Pharma Planning - a Reykjavík-based startup founded three years ago, raised €4.7 million to support its software that helps pharmaceutical companies optimize supply chain management, including demand forecasting, manufacturing planning, and procurement. The round was led by Ieunn, with participation from previous investors Frumtak Ventures and Dr. Agon.

Guardoc Health , a Tel Aviv-based provider of AI-powered software for identifying errors in real-time clinical charting within electronic healthcare records, raised $3M in Seed funding. Pitango HealthTech led the round, including Bertelsmann Investments, Springbank, Fresh.fund, and Oded Barel-Sebag. The company plans to use the funds to expand its operations and development efforts.

RxSaveCard , a Chicago-based company offering a pharmacy benefits solution, has secured $1.7 million in Pre-Seed funding. The round was spearheaded by Distributed Ventures, with additional support from industry insiders. Led by CEO Chris Crawford, the company plans to use the funds to expand its team and enhance its technology. Rx Save Card's innovative solution allows employees to purchase medications directly at over 65,000 pharmacies, complementing existing pharmacy benefits without requiring a change in pharmacy benefit managers. This approach provides an additional avenue for prescription savings, positioning the company as a valuable player in the healthcare cost management sector.

Farmako: Medicines in 30 minutes - a Gurugram, India-based medicine delivery startup, raised $1.6 million in funding from backers, including Unpopular Ventures, Goodwater Capital, 535 West Capital, Bayhouse Capital, and Jude Gomila. The funds will be used to expand further into Delhi and Gurugram.

KALM Therapeutics , a Huntsville-based pre-clinical drug development company, raised $700K in Seed funding from undisclosed backers. The funds will be used to complete regulatory activities, from its pre-IND meeting with the FDA to supporting key personnel and transferring patch production to its manufacturer.

Prana Thoracic , a Houston-based medtech startup, has received an undisclosed investment in its latest funding round. New investor cultivate(MD), GenHenn Capital, and Houston Angel Network supported the round. Existing investors participated, including New World Angels, Johnson & Johnson Development Corp, Texas Medical Center Venture Fund, and the Cancer Prevention & Research Institute of Texas (CPRIT). CEO Joanna Nathan led Prana Thoracic to develop the Prana System, designed for image-guided, minimally invasive surgery, particularly for conditions like lung cancer. The company plans to use the new funds to accelerate product development and advance its clinical and regulatory milestones, potentially bringing its innovative surgical solutions closer to market readiness.

neuro42 , a San Francisco-based developer of portable MRI systems for neuroimaging and interventions, secured an undisclosed investment from Zynext Ventures. The company plans to use the funds to accelerate its progress and deliver innovative solutions to patients.

CuraLinc Healthcare , a Chicago-based provider of employee assistance and mental health programs, received an undisclosed investment from Lightyear Capital. The company plans to use the funds to expand its operations and development efforts.

Earli Inc. , a California biotech firm specializing in early cancer detection, received an undisclosed investment from Accenture Ventures. Earli has developed a unique technology that identifies and targets cancer cells. The company plans to use the investment to expand partnerships with healthcare and pharmaceutical companies to advance cancer detection and treatment.

Funds

Foresite Capital has raised $900 million for a venture fund targeting companies that use artificial intelligence tools to improve healthcare and life sciences.

Create Health Ventures , a venture capital firm based in Austin, TX, and Chicago, IL, focused on early-stage digital health startups, announced the close of its first fund of $21M.