HistoSonics is all ears for $8.3m series B

HistoSonics, a US-based ultrasound tumour treatment developer based on University of Michigan research, today raised an initial $8.3m in series B funding from investors including the university’s Michigan Investment in New Technology Startups (Mints) program.
The round was led by VC firm Venture Investors and backed by University of Michigan’s student-run Wolverine Venture Fund, as well as Fletcher Spaght Ventures, the investment arm of strategic consultancy Fletcher Spaght.
VC firm Hatteras Venture Partners also took part in the round, as did TGap Ventures, Early Stage Partners and Grand Angels.
HistoSonics converted existing debt and interest instruments as part of the round. It expects to add $5m for a second series B close in the second quarter of 2017.
The company has developed a medical device for treating solid tumours, called Robotically Assisted Sonic Therapy (Rast), which uses focused ultrasound known as histotripsy to ablate targeted tissues without harming surrounding structures.
Rast emits pulsed sound waves to create a “bubble cloud” destroying tumours at both cellular and sub-cellular levels. Clinicians can use the system to visualise the process in real-time, improving the precision of their procedures.
The capital will help HistoSonics progress clinical studies on Rast and develop an application of the device targeting liver cancer. Mike Blue, former vice-president of sales and marketing at pharmaceutical group Johnson & Johnson, has been appointed CEO of HistoSonics.
Mints is a $25m venturing fund that invests up to $1m in university spinouts which have also secured support from Mints’ venturing partners.
HistoSonics previously disclosed a total of $28.7m in equity, debt and other instruments, according to regulatory filings and press releases.
The company raised $11m in a 2010 series A round led by Venture Investors that featured Fletcher Spaght, Hatteras, Early Stage and TGap. Grand Angels has also invested previously, though further details could not be ascertained.
HistoSonics also disclosed $14.2m across several tranches between 2009 and May 2014, though it was unclear whether some of this related to the series A round.
Mike Blue said: “Rast has the potential to become an entirely new platform in cancer care, addressing many of the shortcomings of the current options of surgery, ablation and radiation.
“It is non-invasive, so requires no incisions or needles, incredibly precise, and has the potential to offer a safe, fast and economical alternative with reduced patient pain and recovery time, everything you would hope for in an ideal therapy.”