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Posts Tagged ‘New Enterprise Associates’

A new report from health startup accelerator Rock Health shows that funders have invested $1.08 billion in digital health startups this year, which already eclipses the $956 million they spent in all of last year.

cash roll

Venture capital support for traditional life sciences companies may be up for debate, but enthusiasm for digital health startups certainly seems to be on the rise.

According to a report out Wednesday from health startup accelerator Rock Health, in the third quarter of this year, VCs invested 70 percent more money in 84 percent more deals than in the same quarter last year.  Those trends are in line with a mid-year funding report released by Rock Health this summer.

The reports say funders have invested $1.08 billion in digital health startups this year, which already eclipses the $956 million they spent in all of last year.  By the third quarter of last year, VCs invested just $626 million in digital health.

The biggest funders of the year, so far, are Aberdare, Founders Fund, Khosla Ventures and New Enterprise Associates. But the report also notes that the field is attracting newcomers – 10 percent are first time health investors, the report said.

The four largest deals this year – which involved Castlight Health, GoHealth, Care.com and Best Doctors – comprise more than 20 percent of the year’s funding and most of the funding rounds were Series A and B, the report said. But interesting startups including Mango Health, pingmd and Meddik have raised smaller seed rounds.

The report comes a week after the Wall Street Journal said that “the health-care industry in general has fallen out of favor with venture capitalists.” While some in the industry say they’ve seen VC interest shift away from biotech and traditional life sciences that require more time and capital, and are subject to more regulation, Rock Health’s report shows that interest in digital health is still strong.

Read more here.

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SALE OF VIACOR, INC.

Gerbsman Partners (www.gerbsmanpartners.com) has been retained by Viacor, Inc. (www.viacorinc.com) to solicit interest for the acquisition of all, or substantially all, the assets of Viacor Inc. (“Viacor”).

Headquartered in Wilmington, MA, Viacor, Inc. is a medical device company focused on developing and commercializing a novel cardiac implant device for the treatment of functional mitral regurgitation.

IMPORTANT LEGAL NOTICE:

The information in this memorandum does not constitute the whole or any part of an offer or a contract.

The information contained in this memorandum relating to VIACOR’s Assets has been supplied by VIACOR. It has not been independently investigated or verified by Gerbsman Partners or its agents.

Potential purchasers should not rely on any information contained in this memorandum or provided by VIACOR, or Gerbsman Partners (or their respective staff, agents, and attorneys) in connection herewith, whether transmitted orally or in writing as a statement, opinion, or representation of fact. Interested parties should satisfy themselves through independent investigations as they or their legal and financial advisors see fit.

VIACOR, Gerbsman Partners, and their respective staff, agents, and attorneys, (i) disclaim any and all implied warranties concerning the truth, accuracy, and completeness of any information provided in connection herewith and (ii) do not accept liability for the information, including that contained in this memorandum, whether that liability arises by reasons of VIACOR’ or Gerbsman Partners’ negligence or otherwise.

Any sale of the VIACOR Assets will be made on an “as-is,” “where-is,” and “with all faults” basis, without any warranties, representations, or guarantees, either express or implied, of any kind, nature, or type whatsoever from, or on behalf of VIACOR or Gerbsman Partners. Without limiting the generality of the foregoing, VIACOR and Gerbsman Partners and their respective staff, agents, and attorneys,  hereby expressly disclaim any and all implied warranties concerning the condition of the VIACOR Assets and any portions thereof, including, but not limited to, environmental conditions, compliance with any government regulations or requirements, the implied warranties of habitability, merchantability, or fitness for a particular purpose.

This memorandum contains confidential information and is not to be supplied to any person without Gerbsman Partners’ prior consent. Thismemorandum and the information contained herein are subject to the non-disclosure agreement attached hereto as Exhibit A.

Viacor believes its assets are attractive for a number of reasons:
·     Viacor’s PTMA® implant system:

o   The first mitral regurgitation repair implant ever demonstrated to allow percutaneuous repair, with a sedation-only procedure, with the option of device adjustment or removal both during the initial implant and at later timepoints.

o   The system has been developed over a ten year period in cooperation with leading structural heart failure specialists worldwide, the key customer segment for an attractive and rapidly growing new specialty

o   The implant system is supported by extensive clinical and technical know how broadly applicable to mitral repair including structural imaging, patient screening and workup, imaging analysis, procedure control and follow-up

o   The system presents clear opportunities for design and procedure combination with intellectual property and approaches from other mitral repair and heart failure therapies

o   The PTMA system is supported by an extensive history of regulatory correspondence reflecting contemporary expectations of FDA and worldwide authorities for mitral repair

·     Viacor’s PTMA® implant system was studied under an FDA-IDE on an initial, temporary basis and in 2010, after four years of extensive, iterative review, the design dossier and bench test regimen was approved for implantation studies.

·     Viacor’s formal intellectual property includes 13 issued US patents, 2 additional pending US patent applications, and numerous parallelinternational patents and patent applications.

·     Percutaneous structural heart repair is a key focus of the major participants in the worldwide interventional cardiology market, representing one of the most important arenas for market expansion and demonstration of technical leadership.

o   The clinical success of transcatheter aortic valve implantation “TAVI” has established an existing 400 M$+ (30%+ CAGR) ex-US market without reimbursement or US approval

o   The mitral therapy market is expected to ultimately be even larger than the aortic market

o   No percutaneous therapy or clinical approach has yet established meaningful acceptance in the mitral space, with a wide range of possible approaches under early examination; Viacor’s extensive early experience could provide an important addition to various possible next-stage development programs.

·     Possible combination therapies: Viacor’s removable, adjustable coronary sinus technology provides the logical basis for combination with other therapies such as leaflet clip, chordal shortening, and biventricular pacing.  Biventricular pacing presents a particularly attractive opportunity as the PTMA system is placed in the same target anatomy, the coronary sinus, using nearly equivalent techniques for venous access and device deliver.  The device is also generally indicated for same subset of heart failure patients.

Viacor Company Profile

Viacor was founded in 2000 by three leading mitral surgeons, John Liddicoat, Marc Gillinov and William Cohn.  Viacor completed its first venture round in 2002, eventually raising a total of $40 million from investors New Enterprise Associates, Canaan Partners, Medtronic and a network of experienced private investors.

Viacor is a developer of an innovative percutaneous mitral repair implant, PTMA®.  Over a ten year period, the system was perfected through an extensive animal, bench and clinical program, including over 70 human cases in the US, Canada, Germany, Belgium, Netherlands and the Chezk Republic.  The PTMA system has demonstrated favorable late outcomes through over two years post-implantation.

The Viacor system has been repeatedly presented by leading clinicians and major conferences and the technology has been the subject of multiple refereed journal presentations in US and International journals.
Impact of Technology on the Market

VIACOR believes that its PTMA technology and clinical experience offers unique advantages to multiple possible ongoing programs in structural heart failure:

·     The device and intellectual property has clear potential for combination with other emerging treatment methods including leaflet and chordal repairs, and biventricular lead placement.
·     The Viacor approach and technology offers the potential for a single-operator, sedation percutaneous therapy for mitral regurgitation in select patients.
·     The PTMA device is a logical addition to the extended technology and product armamentarium of a number of the major device manufacturers and distributors.

Viacor’s Assets

Viacor has developed a portfolio of assets critical to the development and manufacture of a structural heart failure implant. These assets fall into a variety of categories, including:
·     Patents, Patent Applications and Trademarks
·     FDA filings and extensive, proprietary interactive correspondence
·     Custom built equipment for manufacturing and testing of permanent valvular repair implants
·     Technology and intellectual propertyrelated to custom 600 M cycle durability bench test in simulated mitral valve position
·     Technology and intellectual propertyrelated to the collection and systematic analysis and integrated procedure deployment of of MSCT, 2D and 3D echocardiography and procedure fluoroscopy.
·     Patient Data from 3 clinical trials involving 82 patients
The assets of Viacor will be sold in whole or in part (collectively, the “Viacor Assets”). The sale of these assets is being conducted with the cooperation of Viacor. Viacor and its employees will be available to assist purchasers with due diligence and a prompt, efficient transition to new ownership. Notwithstanding the foregoing, Viacor should not be contacted directly without the prior consent of Gerbsman Partners.

The Sale of the Viacor Assets is being conducted pursuant to a Plan of Complete Liquidation and Dissolution of Viacor, Inc. (the “Plan of Dissolution”) which was approved by Viacor’s board of directors and majority shareholders on December 13, 2010.

Key Personnel

·       Jonathan M. Rourke — President & CEO  Former VP of R&D at Transmedics and EndoTex, over 25years of medical industry management experience, 11 US and various foreign patents
·       Katherine Stohlman  — Vice President, Regulatory and Clinical Affairs  Over 25 years previously held various executive positions in Engineering, Clinical and IT for Hewlett-Packard Medical Products
·       William T. Hayes — CFO  Formerly CFO Transmedics, financial executive, Genuity, Somerville Lumber

VIACOR, Inc. Board of Directors

·       Coy Blevins, Chairman of the Board

·       Jonathan M. Rourke, CEO

·       Ryan D. Drant, General Partner, New Enterprise Associates

·       Gregory Lambrecht, CEO, Intrinsic Therapeutics

·       Steven Bloch, Canaan Partners

·       Richard T. Spencer, Private Investor

·       Sean Salmon, Vice President and General Manager, Medtronic Coronary and Periphral Interventions

The Bidding Process for Interested Buyers

Interested and qualified parties will be expected to sign a nondisclosure agreement (attached hereto as Exhibit A) to have access to key members of the management and intellectual capital teams and the due diligence “war room” documentation (the “Due Diligence Access”). Each interested party, as a consequence of the Due Diligence Access granted to it, shall be deemed to acknowledge and represent (i) that it is bound by the bidding procedures described herein; (ii) that it has an opportunity to inspect and examine the VIACOR Assets and to review all pertinent documents and information with respect thereto; (iii) that it is not relying upon any written or oral statements, representations, or warranties of VIACOR, Inc., Gerbsman Partners, or their respective staff, agents, or attorneys; and (iv) all such documents and reports have been provided solely for the convenience of the interested party, and neither VIACOR nor Gerbsman Partners (or their respective, staff, agents, or attorneys) makes any representations as to the accuracy or completeness of the same.

Following an initial round of due diligence, interested parties will be invited to participate with a sealed bid, for the acquisition of the VIACOR Assets. Sealed bids must be submitted so that the bid is actually received by Gerbsman Partners no later than Friday, January 21, 2010 at 3:00 p.m. Eastern Standard Time (the “Bid Deadline”) at VIACOR’ office, located at 260-B Fordham Road, Wilmington, MA, 01887.  Please also email steve@gerbsmanpartners.com with any bid.
Bids should identify those assets being tendered for in a specific and identifiable way. The attached VIACOR fixed asset list may not be complete and Bidders interested in the VIACOR Assets must submit a separate bid for such assets. Be specific as to the assets desired.

Any person or other entity making a bid must be prepared to provide independent confirmation that they possess the financial resources to complete the purchase where applicable. All bids must be accompanied by a refundable deposit check in the amount of $250,000 (payable to VIACOR, Inc.). The winning bidder will be notified within 3 business days after the Bid Deadline. Unsuccessful bidders will have their deposit returned to them.

VIACOR reserves the right to, in its sole discretion, accept or reject any bid, or withdraw any or all assets from sale.  Interested parties should understand that it is expected that the highest bid submitted will be chosen as the winningbidder and bidders may not have the opportunity to improve their bids aftersubmission.
VIACOR will require the successful bidder to close within 7 business days.  Any or all of the assets of VIACOR will be sold on an “as is, where is” basis, with no representation or warranties whatsoever.  Please note that VIACOR is selling its assets in cooperation with its senior secured creditor.

All sales, transfer, and recording taxes, stamp taxes, or similar taxes, if any, relating to the sale of the VIACOR Assets shall be the sole responsibility of the successful bidder and shall be paid to VIACOR at the closing of each transaction.
For additional information, please see below and/or contact:

Steven R. Gerbsman
(415) 456-0628
steve@gerbsmanpartners.com

Kenneth Hardesty
(408) 591-7528
ken@gerbsmanpartners.com

Dennis Sholl
(415) 457-9596
dennis@gerbsmanpartners.com

Jim McHugh
(978)239-7296
jim@mchughco.com

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Article from GigaOm.

“Forget the AngelGate controversy and shift your attention to the big-money world of cloud computing and infrastructure startups. While the clashing egos clang in the Silicon Valley echo chamber, massive amounts of money have started to flow into cloud companies at nosebleed valuations, and things are only just getting started.

Here are some of the recent deals and some exclusive details on forthcoming rounds and valuations of some of the better-known cloud and big data focused companies:

  • StorSimple, a Santa Clara, Calif.-based storage company making hybrid storage systems, recently raised $13 million in Series B funding. The company, which has yet to bring in a dollar in sales, is being valued at $50 million.
  • RightScale recently raised $25 million in Series C funding from Tenya Capital, DAG Ventures, Benchmark Capital, Index Ventures and Presidio Ventures at a reported valuation of $100-$125 million. Another source suggests that RightScale’s valuation is even higher.
  • Eucalyptus, a company headed by ex-MySQL CEO Marten Mickos, is said to be valued in excess of $100 million, and raised $20 million in new funding from New Enterprise Associates, Benchmark Capital and BV Capital.

On the big data front:

  • Aster Data recently snagged $30 million in new funding from the likes of Sequoia Capital and a new undisclosed investor. Rumored valuation: somewhere between $85 and $120 million.
  • I’ve heard rumors that Cloudera, the Hadoop-based big data company and one of the all-stars of big data movement, is looking to raise a fresh round of funding and is being valued in excess of $100 million.

My sources tell me a handful of cloud companies are likely to raise a ton of money in the coming weeks. So now you must be wondering what’s going on. There are two forces at work:

From a macro standpoint, the investment industry’s thinking about cloud-based investments has evolved. At our Structure 2010 conference, folks like VMware CEO Paul Maritz talked about the 10-year shift in the IT infrastructure. Early cloud doubters such as Oracle’s Larry Ellison are coming around and rethinking the opportunities being offered by the cloud. The venture capital community is sensing an opportunity and pumping dollars into the sector. But when you zero in, you can see that late-stage investors are willingly investing in companies that already have backing from the cream of the crop venture capital firms, such as Sequoia Capital, Benchmark Capital and Index Ventures.”

Read the full article here.

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emphasys-logoEmphasys Medical Inc., a Redwood City, Calif.-based medical device company focused on emphysema, has retained Gerbsman Partners to find a strategic buyer, according to VentureWire. The company canceled an IPO last spring, and before that had raised around $80 million in VC funding. Shareholders include Advanced Technology Ventures (17.8%), Morgenthaler Ventures (13.8%), St. Paul Venture Capital (11.5%) OrbiMed Advisors (13.7%), ABS Ventures (10%), Morgan Stanley Venture Partners (7.4%), Cargill Ventures (6.1%) and Neww Enterprise Associates. www.emphasysmedical.com

Links: peHUB, Biospace, DOW Jones,

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