OrthoSpace, a medical devices manufacturing company, which is currently engaged in the development of a minimally-invasive rotator-cuff treatment device, has managed to raise US$ 8 million from venture capitalists and investors. A sizeable chunk of the company’s fresh capital infusion comes from Healthpoint Capital, followed by Triventures (an existing investor) and Smith and Nephew (medical devices company). Xenia Venture Capital Ltd. also seized this opportunity by selling off US$2.15 million of its holdings in the company to Healthpoint Capital to make a profit to the tune of NIS 6.2 million.
The device being currently developed by OrthoSpace will serve as a support component for the shoulder in the case of server rotor cuff tears. Xenia, in a statement registered with Tel Aviv Stock Exchange (TASE), informed of this move.
OrthoSpace took root in a start-up incubator and was spun off from a company called BioProtect, which created a balloon that could separate tissue so radiation therapy could be performed on an enlarged prostate. This method helped prevent damage to healthy tissue surrounding the area. Experts later discovered that this technology could also be adapted for treating tears in the rotator-cuff.
The balloon serves as a buffer for the injured portion of the shoulder, helping reduce pain. As the tear begins to heal, the balloon degrades and ultimately averting the need for surgery. Founded on this basis in 2009, the company has thus far raised a considerable US$ 8.3 million not counting the latest investment.
Triventures says that the company has been selling its product in the European market rather successfully and is expected to breakeven soon with thousands of procedures having successfully been performed. The CEO of OrthoSpace, Itay Barnea, feels that the company is now ready to consider going international.