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Hemosphere Inc. said it has raised $9.3 million in a recapitalization round to expand sales and marketing for its hemodialysis device and to reach break-even.
New investor Kaiser Permanente Ventures led the round, contributing one-third of the funding, said Hemosphere Chief Financial Officer Susan Horvath. Several new investors, including Mutual Capital Partners, provided another third, while returning investors Affinity Capital Management, Ascension Health Ventures, Cutlass Capital and Saints provided the remainder. Valuation was not disclosed.
Horvath said the round is classed as a Series A-1, recapitalizing the company after existing investors contributed about $24 million over four rounds. "This puts all of the investors on the same playing field," she said.
Horvath said that previous investor Three Arch Partners did not return for the new round but remains a shareholder. Three Arch was not available for comment.
Based in Eden Prairie, Minn., Hemosphere has developed the HeRO Vascular Access Device, which includes a tube inserted into a vein in the neck and a dialysis graft sewn to an artery. The system, which launched in May 2008, aims to reduce central venous damage from traditional dialysis catheters.
"The intention is to expand coverage across the U.S. for sales and marketing and to get us to profitability," Horvath said of the purpose of the recent round, declining to say when the company would reach break-even.