Israeli imaging company ponders U.S. HQ choice after $3.5M fundraise

Israeli diagnostic imaging company Medic Vision is evaluating options for its U.S. sales and marketing headquarters after raising a $3.5 million round of funding led by a Cleveland investment group.

Medic Vision, whose SafeCT technology is designed to plug into a hospital’s computed tomography (CT) network to improve the quality of images, has set an aggressive deadline for making the decision: Jan. 1, 2012, CEO Eyal Aharon said in an email.

“We are currently evaluating several operations models, ranging from hiring local talent to getting into agreements with U.S. service/sales companies,” Aharon said. “Our Cleveland-based investors help us [with] identifying resources in north Ohio. Yet, a definite decision on the U.S. operations model and location has not been taken yet.”

Cleveland-based Bridge Investment Fund, which invests in Israeli medical device companies that are looking to expand into the U.S. market, led Medic Vision’s recent $3.5 million fundraise. (One Bridge portfolio company, IceCure, earlier this year chose Cleveland for its U.S. headquarters, while another, EarlySense, selected the Boston area.)

If Medic Vision chooses Northeast Ohio for its U.S. location, the company would enjoy “great synergies with the imaging sector in Cleveland such as Philips and Hitachi, as well as Cleveland Clinic and University Hospitals,” said Michael Goldberg, a managing partner with Bridge.

Medic Vision already is off to a strong start, having received U.S. Food and Drug Administration clearance for its SafeCT product earlier this year. It’s also secured three paying customers in the U.S., including San Diego-based imaging group Imaging Healthcare Specialists, Aharon said.

The company’s technology figuratively bolts on to a customer’s CT network and supports any brand or model of CT scanner, with a single SafeCT system able to support multiple scanners.

Israeli newspaper Globes recently labeled Medic Vision’s technology as “low-dosage radiation scanners,” which could position the company to take advantage of growing public concern about excessive radiation from medical imaging.

“We operate in a very hot market with a strong need for a solution like ours,” Aharon said. “Our initial customers are happy with the product, so it’s now a matter of execution — selecting the right model, hiring the right people and ensuring customer satisfaction.”