Chicago-based startup ExplORer Surgical has closed a $5 million financing round led by Aphelion Capital. All major existing and new investors participated, according to a news release.
The company offers a cloud-based platform for the operating room. The tool is focused on boosting communication and coordination between all members of the surgical team. Through the use of tailored checklists and analytics, it aims to reduce errors, improve efficiency and decrease any confusion that may arise among team members.
ExplORer Surgical sells its product to hospitals and medical device companies, both of which can use it to analyze activity in the OR. More specifically, hospitals can leverage the technology to provide better instructions to members of the surgical team. For device companies, the offering can assist with improving procedural development for new devices.
Via email, co-founder and CEO Jennifer Fried explained that although her startup originated out of a hospital research lab, medical device companies started to approach it in 2017. Today, its device company customer base is larger than its hospital customer base. She said the company does not disclose specific names of clients.
“This new funding allows us to continue to grow across both customer bases and to further build out our medical device product offering,” Fried added.
Regarding investors, Fried pointed out that Aphelion has strong experience investing in early-stage med tech and health IT companies. The firm also led ExplORer Surgical’s $3 million Series A round in 2017.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
Additionally, the University of Chicago is an investor through its endowment. “The University of Chicago is the institution where our company began, and we are proud to have had them as an investor in every round of funding — starting from our very first small research grant,” Fried said.
She noted that the startup has an angel investor base as well.
As far as next steps, ExplORer Surgical intends to grow its user base and add new features to its offering. Fried mentioned that the company is close to signing its first non-U.S. customer.
Picture: DaevichMikalai, Getty Images
