Atlanta, GA- Medical device company OsteoLign Inc. recently secured $10 million from Versant Venture Capital L.P. in Menlo Park, Calif.; SV Life Sciences with offices in Boston, London and San Francisco; and Accuitive Medical Ventures with offices in Atlanta and Rochester, Minn., according to an Aug. 17 filing with the Securities and Exchange Commission.
A consortium of the venture capital firms invests in a Duluth, Ga.-based incubator called The Innovation Factory, which houses OsteoLign and other seed companies.
It’s the second round of venture capital for the 2-year-old OsteoLign, which is developing a minimally invasive method for treating fractures of the thigh, shin, calf and other so-called long bones in the human body.
OsteoLign will use the $10 million for working capital, according to the SEC filing. Its first round of financing raised nearly $3 million and involved the same VCs.
Executives at the company and venture capital firms could not be reached for comment. But industry leaders say that to gain the backing of Menlo Park and Boston-area VCs is validation that the state’s still relatively young medical technology and biotechnology industries continue making strides.
The gains have come as the result of greater collaboration in recent years between Emory University and Georgia Tech. Both schools have devoted more resources to developing startup companies in medical devices and biosciences and to getting their products on the market.
OsteoLign has strong ties to the Norcross-based medical technology firm Novoste Corp., which sold its signature business — vascular brachytherapy — to Best Vascular in 2006. The technology was designed to prevent the re-clogging of blood vessels after angioplasty.
The founders of Novoste, including Tom Weldon, have gone on to form the Innovation Factory.
The recent round of venture capital included backing from Novoste co-founder Charles Larsen, who also started Accuitive Medical Ventures. Other investors in OsteoLign included another Accuitive founder, Steven Waite, and Accuitive and Innovation Factory CFO Gordon Wyatt.
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