Medical device startup Exo has secured fresh $220 million funding in its Series C round led by RA Capital Management. It comes on the heels of $40 million that the startup raised less than one year ago, as hand-held, cloud-based ultrasound and point-of-care diagnostic devices catch the fancy of health-tech sector.
Redwood City, California-based Exo (pronounced “echo”) said that it plans to use this recent proceed to finish product development on its hand-held ultrasound device, which is built based on patented piezoelectric micromachined ultrasound transducer technology. Exo will also use the money to bring its data and workflow apps to market.
The field of hand-held ultrasound has captured investors’ attention as companies race to build a future where healthcare providers can have instant access and a deeper understanding of their patient’s conditions.
“Exo’s hardware and software are in tandem, with the future of decentralized healthcare at the forefront of every decision. Our vision is a healthcare system unconstrained by the four walls of a hospital and engineered for a world where providers can see clearly into every patient immediately,” said CEO Sandeep Akkaraju.
Device awaiting FDI clearance
The device designed by Exo is in the process of FDA clearance. The device will enable clinicians to scan and diagnose at the point of care. Instead of sending a patient into the radiology ward for the scan, keep waiting for the ultrasound images to arrive. The company is planning to launch the device before the end of 2021.
The device will be using ultrasound silicon technology. It can be used for the entire body to find veins to set up IV channels, monitor heart conditions and scan lungs. It will lay the foundation for at-home exams, with patients being virtually guided through a scan by a connected healthcare provider. At the same time, its digital solution Exo Works aims to streamline exams, documentation and billing by interfacing with a range of electronic medical record systems.
Point-of-care diagnostic is future of healthcare
The company’s $220 million Series C round brings its lifetime funding haul to over $320 million. With additional backing by BlackRock, Sands Capital, Avidity Partners, and Pura Vida Investments plus previous backers, RA Capital Management led it.
“Hand-held ultrasound is changing how medical care is delivered. It has already been proven by its use during the COVID-19 pandemic when it was difficult to bring cart-based systems into triage areas,” said Arun Nagdev, senior director of clinical education at Exo.
“Emergency medicine will become so much more precise, swift, patient-focused and outcome-oriented as physicians are educated and empowered by intuitive hand-held ultrasound devices that are at the ready for everything from traumatic injury diagnosis to nerve-block procedures,” Nagdev added.