Augmedics announced today that it closed a Series D financing worth $82.5 million just after recording the 4,000th U.S. patient treated with Xvision.
The Xvision Spine System uses augmented reality to give surgeons “x-ray vision” during surgery. It launched new, FDA-cleared features and indications for the system in March. The system superimposes critical data onto the surgical field, allowing surgeons to visualize patient anatomy through the skin and tissue.
CPMG led the financing round, with Evidity Health Capital added as a syndicate partner. Chicago-based Augmedics received participation in the funding round from current investors H.I.G. Capital, Revival Healthcare Capital, Almeda Ventures and more.
The company said in a news release that it plans to use funds to support its “rapidly expanding” U.S. commercial footprint. Augmedics also plans to use it to deliver next-generation platform advancements to enable mass-scale adoption of Xvision.
“To close an $82.5M round in the current fundraising environment is a testament to the dramatic impact Augmedics is making on the field of spine surgery. The accomplishment is underscored by the tremendous achievement of 4,000 patient lives impacted,” said Augmedics president & CEO Kevin Hykes. “We are pleased to secure the resources to continue leading the market in the adoption of augmented reality spine surgery.”
Augmedics Chair Rick Anderson added that the financing “signifies the utmost confidence in the Xvision technology.”
As part of the financing, CMPG’s Kent McGaughy and Evidity’s Paul Enever join Augmedics’ board of directors.
More about the Augmedics Xvision technology
The Augmedics Xvision technology became the first FDA-approved AR navigation system for surgery in December 2019. Surgeons can not only visualize anatomy with the platform but accurately navigate instruments and implants during spine surgery.
Unlike traditional navigation systems that require surgeons to look away to an ancillary screen, Xvision allows them to keep their eyes on the patient. This enables better visualization, control and accuracy during spine procedures.
Augmedics announced its new features including artificial intelligence (AI)-based image enhancement functionalities in March. Xvision now also features new customizable views to expand its advanced visualization and customization capabilities.
The system now includes new cervical and iliosacral indications, joining existing thoracic, lumbar and sacral indications. This expands Xvision navigation to cover nearly the entire spine. Surgeons can now utilize the advantages of its navigation in posterior cervical and pelvic approaches. Augmedics says this lays the groundwork for future platform developments supported by the funding.
Commentary from CEO Kevin Hykes
Augmedics CEO Kevin Hykes will feature on the next episode of the DeviceTalks Weekly Podcast, set to release on Friday, June 30. He offered some insight into what the Series D funding round means for the company:
Q: Why is this round of capital significant for Augemedics?
I think this is a signal of the opportunity that this company represents in the market — the opportunity to impact the way surgery is performed and the patient outcomes that we can affect. It’s an important validation of our early commercial efforts and the technical platform that we built.
It’s important for us because it allows us to further iterate both commercially and technically to lead this market in this next chapter of the company’s history.
Q: What are the plans with the capital? What do you intend to do?
It’ll largely be focused on technical iteration, both for the hardware and software elements of our system and the launch of our second-generation headset in the next 18 months. On the commercial side, it’ll be directly related to our commercial team and the people we hire to support these procedures and introduce new centers and new physicians to the technology.
Q: How was the fundraising experience? Was it difficult to raise this much capital?
The short answer is yes. This is a very difficult fundraising environment. There are very few companies able to raise capital in this environment. Only the highest opportunities get access to capital.
We’re thrilled to be able to have closed this round, especially with the size of the round itself, and pleased to be able to now switch out of fundraising mode and get back to work, helping patients and helping physicians.