April 1, 2014 @ 4:31 pm

NeuMoDx Announces Completion of Series B Financing

Funds Product Development for High Throughput Molecular Diagnostic Platform

NeuMoDx Molecular, Inc., a privately held diagnostics company developing a new platform for high throughput, low cost molecular testing, today announced completion of its Series B financing. Pfizer Ventures led the $21 million Series B, which also included investment from Baird Capital, Venture Investors, and existing investor Arboretum Ventures. This financing will be used to fund development of the NeuMoDx 500 Molecular IVD System, a fully automated, random access platform capable of performing RNA and DNA-based assays. In addition to completing platform development, this funding will enable the company to pursue clinical trials and regulatory approvals for the system’s first assays.

 

“We are thrilled to have a strong investor syndicate supporting NeuMoDx during a critical period for the company,” said Jeff Williams, Founder and CEO of NeuMoDx. “We have made excellent progress over the past 24 months, and are now ready to accelerate development and validation of this exciting platform. The molecular diagnostic market continues to grow, and we see a great unmet opportunity for a system with improved workflow and a lower cost per test.”

 
“Molecular diagnostics are of increasing importance to the pharmaceutical industry as it pursues precision medicine approaches to new therapeutics.” added Bill Burkoth of Pfizer Ventures. “The NeuMoDx team has a deep understanding of the markets and technology in the space, and has designed an IVD platform intended to significantly reduce the cost, time, and complexity of conducting molecular-based tests for precision medicine.”

 
NeuMoDx began operations in 2012 after closing a $5 million Series A financing with Arboretum Ventures. Wolverine Venture Fund, a student-led venture capital fund at the University of Michigan, also participated in the Series A and B financings.

 

About NeuMoDx:
NeuMoDx Molecular, Inc. will provide hospital and clinical reference laboratories with a superior solution for in vitro molecular diagnostic testing. The NeuMoDx platform will offer significantly improved ease of use, considerably lower costs and dramatically higher performance as compared to other systems for nucleic acid testing. The company is led by Jeff Williams (Founder & CEO) and Sundu Brahmasandra (President), who have demonstrated success in building in vitro diagnostic companies, including HandyLab, a molecular diagnostic company which sold for $275 million in 2009.

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February 11, 2014 @ 2:00 am

ArborMetrix Receives Additional $1.3 Million in Series B Financing From Renaissance Venture Capital Fund and Detroit Innovate Fund

National Market Demand for Performance Analytics for Surgical and Specialty Care Surging

 

ANN ARBOR, MI–(Marketwired – Feb 10, 2014) – ArborMetrix, Inc., a leading provider of real-time healthcare analytics, today announced that it has increased its Series B financing by $1.3 million to allow Renaissance Venture Capital Fund and Detroit Innovate to participate.

 

The earlier round of Series B financing, announced in July, was led by RPM Ventures (RPM) alongside existing investor Arboretum Ventures. Wolverine Venture Fund also participated in the earlier investment.

 

The latest investment will accelerate ArborMetrix’s national market expansion to meet surging demand for its proven real-time, risk-adjusted clinical performance analytics tools. ArborMetrix’s analytics enable healthcare providers and payers to improve the quality, safety and cost-effectiveness of surgical and other specialty care.

 

“We have followed the progress of ArborMetrix and have continually been impressed with its innovative approach to healthcare analytics,” says Chris Rizik, CEO of the Renaissance Venture Capital Fund. “There is an acute need for actionable information that can increase the quality of healthcare and reduce its costs, and ArborMetrix is a pioneer, developing unique tools that will help healthcare providers to address these issues in ways that simply haven’t been possible before. The bar is high for Renaissance to invest directly in a company, but we were so excited by the great promise we see in ArborMetrix that we wanted to be part of it.”

 

The Renaissance Venture Capital Fund is a Michigan-based fund that supports the growth of venture capital in Michigan while serving as a bridge between Michigan’s emerging innovation company community and its strong industrial and commercial base.

 

“ArborMetrix is positioned extremely well for taking a leadership role in healthcare analytics,” said Adrian Fortino, Vice President of Detroit Innovate. “We look forward to working with the team as they scale up nationally.”

 

Detroit Innovate is a Southeast Michigan-focused early stage investment fund targeting technologies in the healthcare, transportation, advanced manufacturing and resource efficiency sectors.

 

ArborMetrix CEO Brett Furst stated, “The local support for enabling fast-paced growth in Michigan companies is incredible. We are very excited to welcome Renaissance and Detroit Innovate into the ArborMetrix fold. Their involvement in accelerating our growth will certainly open up exciting new opportunities for ArborMetrix to expand across the U.S.”

 

TWEET THIS: .@ArborMetrix secures $1.3 M from @RENVCF, @DetroitInnovate to help expand nationally to meet demand for #clinical performance analytics

 

About the Renaissance Venture Capital Fund
Formed out of the groundbreaking “Road to Renaissance” initiative of Business Leaders for Michigan, the Renaissance Venture Capital Fund (RVCF) is the largest privately funded organization of its kind in the US. The investors in Renaissance recognized the importance of venture capital in the economic growth of the State as well as the financial rewards available to investors who mine the treasure of research and innovation present at Michigan’s world-class universities, institutions and corporations. Through its investment in top tier venture firms that are active in Michigan, as well as its own co-investments in emerging Michigan companies, the Renaissance Venture Capital Fund is helping to drive forward both innovation and growth of emerging companies in the region. For more information, visit http://www.renvcf.com/.

 

About Detroit Innovate
Detroit Innovate was launched by Invest Detroit as an early stage fund to fuel high-growth companies in the Detroit Region. The fund is part of Invest Detroit’s family of funds that serve as catalysts for targeted economic development. The fund targets enabling technologies in the healthcare, transportation, advanced manufacturing and resource efficiency sectors.

Visit http://www.detroitinnovate.com

 

About ArborMetrix
ArborMetrix, Inc., based in Ann Arbor, Mich., is a healthcare analytics and software firm specializing in quality measurement, cost-efficiency and performance improvement for surgical and other acute hospital and specialty-based care. The company focuses on developing rigorous data analysis and actionable business intelligence solutions that raise the bar on quality, performance, utilization and cost-efficiency for hospitals, health systems, specialty societies, quality collaboratives and health plans. ArborMetrix’s unique, cloud-based technology evolved from groundbreaking research by the company founders on improving the quality of surgical care and econometric performance measurement. For more information, visit www.arbormetrix.com, email info@arbormetrix.com or call 734-661-7944, ext. 7008.

 

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January 8, 2014 @ 1:22 pm

Delphinus Gains 510(k) Clearance For Breast Ultrasound Tomography

Delphinus Medical Technologies, Inc., innovator and developer of a new ultrasound platform that images the entire breast, has received 510(k) clearance from the U.S. Food and Drug Administration for the SoftVue™ whole breast ultrasound tomography system, approved for diagnostic breast imaging.

 

Delphinus is the first company to design and manufacture a breast ultrasound system that utilizes ring transducer technology to transmit and receive ultrasound signals. Traditional hand-held ultrasound and automated breast ultrasound systems obtain only reflected echoes returning in the direction of the linear transducer. By contrast, SoftVue captures reflection echoes from all directions around the breast and gathers transmitted signals coming through the breast, something no other ultrasound system, currently available, can do.

 

“We believe that the opportunity now is better than ever for SoftVue’s ultrasound system to advance the state-of-the-art in breast cancer diagnostics,” commented Paul McCreadie, managing director of Arboretum Ventures and Chairman of the Board of Delphinus. “The shortcomings of existing modalities are widely known, and SoftVue’s ability to provide early and accurate diagnostic information without the risk of radiation exposure will serve to improve women’s health.”

 

With the breast suspended in warm water and a short exam time of one to two minutes per breast, the exam is safe, fast and comfortable.  While traditional ultrasound looks at only a limited area of breast tissue, SoftVue provides a complete map of the whole breast.  And unlike traditional ultrasound where the outcome of the exam is dependent on operator skill and experience, the exam is consistent and uniform, removing user variability.

 

From Mark Morsfield, CEO of Delphinus, “We are pleased to receive this clearance from the FDA for our innovative technology. With an experienced team dedicated to advancing breast imaging and women’s health, Delphinus is committed to assisting medical professionals better define and diagnose breast disease, while establishing a better patient experience that can be available for all women, regardless of age and without the concern of radiation or discomfort.”

 

 

About Delphinus Medical Technologies, Inc.

Delphinus Medical Technologies, Inc., a Michigan-based company, is a spin-off of the Barbara Ann Karmanos Cancer Institute (KCI). The patented technology is a whole breast ultrasound tomography imaging device that provides no radiation, no compression, and is not dependent on operator skills. Delphinus Medical Technologies holds the UST intellectual property, transferred by KCI through a worldwide license to commercialize the SoftVue technology. For more information, visit www.delphinusmt.com.

 

About Arboretum Ventures

Arboretum Ventures is a venture capital firm specializing in the healthcare sector. Founded in 2002, the firm manages $235 million in capital and has invested in more than 30 companies, five of which have exited with an aggregate valuation of approximately $1 billion. Arboretum invests throughout the United States, with a preference for Midwest opportunities, targeting capital efficient companies that can meaningfully reduce healthcare costs in key areas of expertise: devices, diagnostics, services, and IT.  For more information, please visit www.arboretumvc.com.

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October 24, 2013 @ 10:28 pm

Outgoing MVCA Chair Tim Petersen: VC in Michigan Bucking National Trend, Inspiring Startup Culture in State

Tim Petersen sees VC as the spotlight that’s making Michigan shine bright in the national landscape.

 

“Venture capitalists in Michigan continue to grow in an environment where, in other parts of the country, the industry is contracting,” said a Managing Director of Arboretum Ventures and the outgoing chair of the Michigan Venture Capital Association. “Nationally, statistics are down, but in Michigan, we’ve accelerated venture under management and are getting more deals done compared to most of the rest of the country. What’s exciting is that people – entrepreneurs and other VCs – are taking notice of what’s happening here.”

 

Now on its third fund, Petersen and his partners have led Arboretum Ventures to incredible success. The organization is a prime example of what’s exciting about Michigan’s VC community right now.

 

“Arboretum’s core portfolio companies in the third fund, including Tangent Medical Devices, ArborMetrix and NeuMoDx, are looking very promising,” said Petersen, “and they’re all based in Michigan. We don’t just invest in Michigan, but the Michigan companies are really exciting.”

 

“In the past year, one of our companies, Esperion Therapeutics, went public,” Petersen added. “Two years ago we helped found ArborMetrix and it has outgrown its start-up space and now has prime office space in downtown Ann Arbor.”

 

In addition to his work at Arboretum, Petersen has served as the chair of the Michigan Venture Capital Association for the last two years. He’s quick to point to the organization’s greatest accomplishment: Bringing up the next generation of venture capitalists and keeping the industry ahead of the national curve.

 

“The launch of the Michigan Venture Capital Association Venture Fellows Program has been very exciting,” Petersen said. “It has struck a chord with our VC members, and they’re readily utilizing the program. We weren’t sure what to expect when we launched it with MEDC support less than two years ago, and it’s exciting that it has really taken off. Having spent time with the fellows, it’s easy to see that there’s a desire to be in this profession, in Michigan.”

 

To Petersen, Michigan’s future only looks brighter when considering what’s yet to come. He’s particularly inspired by the growing ranks of serial entrepreneurs in Michigan, and the potential for that trend going forward.  “In recent years, there have been more and more entrepreneurs that are exiting and then starting a new venture,” he said.  “When I talk to students about being an entrepreneur, I always say it’s a profession – it’s a lifelong gig. The good news is that experience makes it easier to grow a successful company, which is why serial entrepreneurs are so important.”

 

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September 10, 2013 @ 7:02 am

Michigan Companies Make Forbes Venture Player List

Three Michigan companies, and MVCA members, are considered among the top venture players in the midwest.

 

(excerpted from Forbes article)

“As entrepreneurs all over the country and the world make the leap into startup life, investors are keeping step to finance them—hoping to own a piece of a company that could yield buckets of cash. Venture capital firms have been circling innovation capitals like Silicon Valley and New York City for years but have recently been forced to take notice of other regions where young companies are putting down roots.”

 

Read the full story.

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August 8, 2013 @ 8:18 am

Strong B2B Base, Deep Roots in Building Sustainable Businesses: Why Michigan is for RPM Ventures

RPM VenturesRPM Ventures, founded in 2000, is a seed and early stage venture firm with $75 million under management. RPM concentrates its investing in the information technology (IT) space, on companies in specific disciplines.  RPM specifically seeks opportunities in businesses where the firm’s West Coast experience and Midwest roots add strong value: Retail automotive software, industrial and retail enterprise solutions, E‐commerce, online marketplaces, and cloud and social media infrastructure.

 

RPM co-founders Tony Grover and Marc Weiser both attended University of Michigan, and chose to come back to the state to grow their careers.  Before starting RPM, Grover and Weiser’s experiences included working for Intel and starting three venture-backed IT ventures.

 

“The story isn’t that we left the excitement of the coast to come back to Michigan, but that we deliberately chose to start RPM here,” said Grover.  “Our presence in Michigan is a strong asset in the sectors where we focus; our portfolio companies can tap into the resources here in the Midwest and use those resources to leap ahead of their competition.”

 

“Michigan offers the relationships and global connections that few other locations can match,” Grover added.  “We’re home to major automotive manufacturers, Tier 1 automotive suppliers, Whirlpool, and Dow Chemical – to name a few.  Some of these companies are focused on consumer products, some on industrial B2B, but every single one has large international presence and all are using IT to make their business more efficient.  For RPM’s portfolio companies, those factors are enough to make the argument for ‘Why Michigan?”

 

The quality and type of investment that RPM is able to find in Michigan strengthens that argument. The firm has made a new investment in Michigan every six months for the last 18 months.  RPM led investment rounds in DeepField, Kontextual, and ArborMetrics. All of these recent investments are reflective of Michigan’s ever growing and strengthening entrepreneurial economy.

 

“DeepField was co-founded by two early Arbor Networks employees and is a great example of a successful local company that spawned entrepreneurs who launched several ground breaking new startups,” explained Grover.  “Kontextual was founded by Kurt Skifstad, a local tech CEO and serial entrepreneur who has a track record of success here and wanted to stay in Michigan. A prominent University of Michigan faculty member founded ArborMetrics, and its seed round was led by Michigan VC firm Arboretum Ventures.  All three of these companies have very exciting stories that center on wanting to grow in Michigan and being able to find the talent and funding to help them do it.”

 

“When you look at what Michigan has to offer entrepreneurs and venture backed companies, you see that we have a strong B2B base and deep roots in building sustainable businesses.   Those deeps roots are actually changing our present economy.  We’re starting to have more successes here, gaining experience here, and we’re growing the entrepreneurial talent base here,” Grover added.  “Recently, we’ve seen successful exits, like Arbor Networks, HealthMedia and Accuri Cytometers, and increasing VC activity. It hasn’t happened overnight, but it’s happening here now and building the base for continued future entrepreneurial growth.”

 

Looking forward, Grover is optimistic that this upward trend will continue.  “We’ve spent a decade growing RPM and are confident that the areas where we’ve built our expertise are our future. We’ll keep doing what we do, and we’re excited for how things are changing in the market and in this state.  We’re seeing more capital, talent, and experience accruing in Michigan, and that provides a great outlook for the future.”

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July 18, 2013 @ 6:14 am

Arboretum Ventures, RPM Ventures and Wolverine Venture Fund Finance ArborMetrix

(excerpted)

ArborMetrix, Inc., a leading provider of real-time healthcare analytics, today announced that it has closed a $7 million in Series B financing led by RPM Ventures (RPM) alongside existing investor Arboretum Ventures. The Wolverine Venture Fund also participated in the financing.

 

The investment will accelerate ArborMetrix’s national market expansion to meet surging demand for its proven real-time, risk-adjusted clinical performance analytics tools. ArborMetrix’s analytics enable healthcare providers and payers to improve the quality, safety and cost-effectiveness of surgical and other specialty care.

 

read more…

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February 20, 2013 @ 8:48 am

Hopen Life Science Ventures’ Expert Team Committed to Creating Culture of Innovation in Michigan

Founded by a team with deep roots in life sciences, Hopen Life Science Ventures is shining a light on all that the Midwest has to offer young healthcare companies. Between its two funds, Hopen manages more than $65 million, which it prefers to invest in the region. Hopen is headquartered in Grand Rapids and recently opened an office in Cleveland.

 

Hopen Life Science Fund I invested in a portfolio of seven companies that have raised over $110 million of total syndicated investment. The Fund I portfolio attracted the attention of other private investors in the region who wanted to invest with Hopen. Hopen Life Science Fund II was formed in 2011 and now totals $40 million.

 

“We believe the network of expertise at Hopen is a huge differentiator and an advantage. The Hopen team grew up in life science, and we apply these experiences to the deals we consider,” said Mark Olesnavage, a managing director at Hopen. “We are proud that we can use our technical expertise and experience to invest in early to mid-stage life science companies – investments that are viewed as inherently risky.”

 

With healthcare budgets under the microscope, Hopen is particularly sensitive to innovation that lowers total costs. That strategy recently led the firm to participate in a syndicate with fellow Michigan VC firm Arboretum Ventures, co-investing in Fidelis. Fidelis, based outside of Chicago, offers an innovative approach to address the individual needs of patients dually eligible for Medicare and Medicaid. The investment, which is a departure from Hopen’s historical investments in segments like drugs and devices, was made possible because of the firm’s team of advisors and their extended networks.

 

Hopen’s other recent investments include companies in Michigan and throughout the Midwest:

  • Tolera Therapeutics, based in Kalamazoo, Mich., is developing its lead drug for induction during kidney transplantation. The drug has completed Phase II and should be ready to begin Phase III late this year.
  • Metabolic Solutions Development Company (MSDC), a Kalamazoo, Mich.-based developer of novel therapeutics for metabolic diseases, whose first two drugs for type-2 diabetes are currently in phase 2 clinical trials.
  • NeoChord, based in Minnetonka, Minn., a medical device innovator aimed at mitral valve repair in the heart, which is conducting an ongoing clinical trial in Europe.
  • Transcorp Spine, a Grand Rapids medical device company providing solutions for compressions of the cervical spine, which is in the beginning stages of developing regional commercial sales.
  • Intervention Insights, a bioinformatics platform developed in Grand Rapids, informs personalized cancer therapies.

 

To Olesnavage and the team at Hopen Life Science Ventures, the future looks bright.  “We’re bullish about the future,” he said.  “We are confident in our team and our strategy, and that includes our commitment to the Midwest. Syndicating capital here by building the reputation of what’s here is a huge opportunity. The more success stories the region can have, the stronger our case.”

 

“Individuals in the Midwest and Michigan have a strong work ethic and sense of values that make companies here an attractive investment,” he added. “People are willing to work hard, but at the end of the day, it’s about creating a culture where people are willing to take a chance and innovate. We’re heading in that direction, and that’s exciting.”

 

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July 11, 2012 @ 7:45 pm

MVCA Programs to Attract Investment, Entrepreneur Talent Gaining Traction

FOR IMMEDIATE RELEASE – JULY 11, 2012 — ANN ARBOR, MICH. — The Michigan Venture Capital Association’s (MVCA) programs to develop the state’s investment community are helping venture capitalists and their portfolio companies attract and retain top talent.

 

As part of its Michigan Venture Fellows Program, MVCA recently placed fellows at member firms Detroit Venture Partners and Open Prairie Ventures.  The organization also awarded funding for CEO Placements to ArborMetrix, a firm backed by MVCA member Arboretum Ventures, and ProNai Therapeutics, backed by MVCA member Apjohn Ventures. MVCA member firms Plymouth Ventures and RPM Ventures received funding through the Executives in Residence program.

 

“Finding, recruiting and developing top talent is a critical need for both investment firms and their portfolio companies,” said MVCA board chair and Arboretum Ventures managing director Tim Petersen.  “MVCA’s programs to help VCs and venture-backed companies fill a void while shining a light on the opportunities that exist in our state for both investment professionals and C-level talent that want to work for entrepreneurial ventures.”

 

The MVCA’s Michigan Venture Fellows, CEO Placement and Executives in Residence programs are funded by the Venture Upstart II allocation from the Michigan Economic Development Corporation (MEDC). The Michigan Venture Fellows Program is intended to create the next generation of venture capitalists and investment professionals in Michigan.  The Executives in Residence and CEO Placement programs are designed to support the eventual placement of an executive into a portfolio company’s operations post-investment or find and hire a qualified CEO candidate for a portfolio company.

 

Jared Stasik, a recent graduate of UC-Berkeley, and Sam Hogg, former director of venture development at NextEnergy, are participating in the MVCA Fellows program.  Stasik is joining Detroit Venture Partners and Hogg is joining Open Prairie Ventures.

 

ArborMetrix and ProNai Therapeutics received funding CEO Placements awards from MVCA.  The funding will be used to execute CEO searches, which both firms are currently conducting.

 

Plymouth Ventures welcomed Kevin Terrasi and RPM Ventures welcomed Kurt Skifstad into their firms for a period of deal sourcing and advisement, with an ultimate goal of placing these executives in a leadership role at a portfolio company.  Terrasi and Skifstad both bring operational experience to their venture firm sponsors.

 

Michigan venture capital firms participating in the Michigan Venture Fellows program receive assistance in hiring an associate.  Michigan venture capital firms may apply for a loan award to assist with the first year salary of an Executive in Residence or a CEO for a Michigan-based portfolio company.  The CEO Placement loan award may also be applied toward the recruiting fees incurred in finding an entrepreneurial CEO.

 

About the MVCA
The MVCA is a non-profit trade organization designed to bring together venture capital industry participants in the state of Michigan.  The organization’s goal is to grow and sustain a vibrant venture capital community in Michigan.  Membership includes private venture capital funds, corporate venture capital funds, private equity firms, angel investors, and entrepreneurial infrastructure participants.  The MVCA is a vehicle to bring together industry participants and to provide a concerted voice for Michigan’s venture capital industry.  www.michiganvca.org

 

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June 11, 2012 @ 6:44 am

Wolverine Venture Fund Joins Arboretum Ventures in Investment

The Wolverine Venture Fund recently joined Arboretum Ventures in a $25 million Series A investment in Sonitus Medical.

 

“It’s exciting—we expect to make money and we feel pretty good about  their product, which will make peoples’ lives better,” said Erik Gordon, associate director of U-M’s Samuel Zell & Robert H. Lurie Institute for Entrepreneurial Studies and managing director of the Wolverine Venture Fund.

 

Read the story from Xconomy.

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The MVCA is a non-profit trade organization designed to bring together venture capital industry participants in the state of Michigan. The organization's goal is to grow and sustain a vibrant venture capital community in Michigan.
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