The San Antonio medical device company Renovo Concepts announced the completion of its $6.4 million Series A preferred stock fundraising round Thursday. Renovo is developing a way to reduce the damage caused by inflammation setting in after severe traumatic injuries to the brain (TBI) with its Mechanical Tissue Resuscitation (MTR) device.
The round was oversubscribed, as the company raised approximately $6.4 million in new money on a stated $6 million offering. Proceeds from this funding round are being used primarily to fund product development, initial manufacturing, and safety human clinical trials. The funds will enable Renovo to get its device through the testing evaluations required by the U.S. Food and Drug Administration. After that point, Renovo will then pursue clinical trials, which will require a Series B funding round.
The fundraising for this medical device startup shows promising signs of investor interest in emerging biomedical technologies. The company raised $1.3 million in an earlier 2020 round.
“We’ve added new investors locally, as well as from nine other states, and we have a promising list of additional investors wanting to participate in future funding rounds,” said Mark Standeford, Renovo Concepts CEO.
Surgeons would use Renovo’s device to prevent the secondary impacts from reduced blood flow and tissue death caused by inflammation in cases of severe traumatic injuries to the brain, heart, and spine. The Mechanical Tissue Resuscitation technology removes excess fluids in damaged tissues of the brain, heart, and spine using the controlled application of vacuum to the injured area.
Two Wake Forest University School of Medicine professors, Louis Argenta, MD, and Michael Morykwas, Ph.D., invented this therapeutic method and the negative pressure wound therapy technology commercialized by KCI. Argenta is Renovo’s chief medical officer, while Morykwas is the company’s chief science officer and president.
The biotech company launched in 2017 and is pursuing both commercial and military markets with its innovation. They were one of the first companies to receive $50,000 seed funding from the San Antonio Military Medical Innovation (SAMMI) Fund, a city of San Antonio initiative launched in late 2019 to support local companies interested in collaborating with the military medical community. TBI is a significant combat casualty for the military.
Standeford said Renovo is moving fast and already has a Class 8 cleanroom located in the San Antonio Technology Center near the Medical Center, the first of its kind manufacturing operation to produce the proprietary component locally. Renovo is now manufacturing the devices from its facility in San Antonio.
Standeford also confirmed Renovo is developing a version of the device for injuries to the heart.
Another benefit of using the MTR device is that it accelerates healing and reduces the damage to the brain, Renovo’s CEO explained, which in turn also reduces the cost of patient care by reducing the time in the hospital.
“TBI patients typically spend time in the OR and ICU, the most expensive places to receive treatment in any hospital,” Standeford said. “It’s an underserved patient population with few treatment options.”
The featured image shows diagnostic images of brains. Image courtesy Renovo Concepts.