Brisbane-based medtech Convergence Medical, the developer of a world-first arthroscopic surgical robot, has secured $5 million in a Series A round that has attracted the support of US investor Avicella Capital and boosted the company’s valuation to $30 million.
Convergence Medical, founded and led by Dr Chris Jeffery, will use the funds to support plans to commercialise its VO1 surgical robot and expand into the US market.
The latest funding round comes a little over a year after the VO1 was accepted into the US Food and Drug Administration’s (FDA) Breakthrough Devices Program which is facilitating its path to market. Convergence Medical notes that less than 3 per cent of devices submitted to the FDA are accepted into this program.
Jefferey, a medical doctor specialising in the field of orthopaedic innovation and winner of the Deep Tech category at the 2024 Australian Young Entrepreneur Awards, was the driving force behind previous ventures Field Orthopaedics and Audeara (ASX: AUA).
Jeffery, who graduated from medicine in 2014 and worked as a principal house officer in the orthopaedic department of Brisbane’s Princess Alexandra Hospital, began his entrepreneurial journey in 2015 while also undertaking a PhD in bionics looking at the integration between humans and robots.
“We’re thrilled to achieve this important milestone in our journey to commercialisation and excited to be working with Avicella Capital, who are seasoned investors with a great track record in the global medtech industry,” says Jeffery.
“This funding enables us to accelerate our growth and bring our transformative technology to hospitals and surgeons around the globe.
“Our mission is to create more efficient, effective solutions that support medical professionals and improve patient outcomes worldwide.”
The arthroscopic industry is estimated to be worth about $6 billion globally with arthroscopic surgery used to treat more than 50 million injured wrists, elbows, shoulders, spines, hips, knees and ankles each year.
The V01 robot is designed to reduce the physical and cognitive burden on surgeons while enhancing operative precision and dexterity. Convergence Medical sees the technology transforming arthroscopic operations with the VO1 said to offer 21 degrees of freedom that improves operative perception and precision.
Convergence Medical also says its $30 million valuation following the latest investment round sets the stage for “significant expansion and innovation in the global healthcare sector”, while also delivering “a significant return on investment” to angel, pre-seed and seed investors who have backed the company since its inception three years ago.
Avicella Capital is a US-based venture capital firm that specialises in the healthcare sector.
"We recognise the potential of Convergence Medical as they look to transform arthroscopic surgeries for physicians and patients globally,” says Dr Gennady Bratslavsky, co-founder and partner of Avicella Capital.
“Convergence Medical, under the leadership of Chris Jeffrey, is a pioneer in medtech innovation."
The fresh capital injection will be used by Convergence Medical to scale production, expand global partnerships and advance its research and development efforts in preparation for a soft launch of the V01 surgical robot this year.
Jefferey recently revealed that Convergence Medical already has five hospitals ready to take delivery of the VO1 by November. The company also has opened a US office in San Francisco.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support