Dormir completes $12 million Series A round for sleep-center expansion

CARMEL, Indiana — New health investor Excel Venture Management has added $4 million to complete a $12 million Series A round for Dormir, the sleep-therapy services and equipment provider, the companies announced Wednesday.

Dormir had by late May raised about $8 million of its funding through Noro-Moseley Partners and CHL Medical Partners, the latter of which lead the round. The money will be used to expand Dormir facilities across the country through new building, acquisitions and joint ventures. The company runs 32 sleep diagnostic centers through its subsidiary MD Sleep, and also operates 31 equipment distributors through its Cardiosom subsidiary.

Dormir believes its facilities and approach to managing sleep-related disorders will provide better care and outcomes to patients.

Sleep centers are moving from “mom and pop shops” to more consolidated and professional services — due in part to new licensing regulations, said Juan Enriquez, a managing director at Excel. “The thing we’re finding out about sleep disorders is, No. 1, they are growing and, No. 2, they have a huge impact on people’s health,” Enriquez said. “They impact longevity, obesity, diabetes, cardiac health, relations with spouse…”

Modern sleep centers require more professionalism, better management and ties to hospitals. Enriquez said Dormir Chief Executive Timothy Miller “saw that early and built a very professional team around him.”

As part of the investment, Enriquez, CHL’s Jeffrey Collinson and Noro-Moseley’s Michael Elliott will join Dormir’s board of directors. Excel Vice President Caleb Winder will be a board observer.

This is Excel’s fifth investment in its new fund.