Augmedics raised USD $15 million in Series B financing, led by its U.S. staff. The company’s employees formed limited liability company AUG Management to raise $4 million to secure and launch the company.
The company was granted FDA 510(k) clearance at the close of 2019 for the xvision Spine augmented reality guidance system for control and visualization to navigate instruments and implants while looking directly at the patient. xvision launched in 1Q20.
Augmedics began Series B fundraising in 3Q19, intending to close the round by 2Q20 after successful commercialization of xvision. While seeking a lead venture capital source, the company raised SAFE investments (simple agreement for future equity) to continue operations.
Augmedics received several VC offers and was ready to make final investor decisions in March, when the COVID-19 pandemic brought investor activity to a halt. That, compounded with a pause in elective procedures such as spine surgeries, led Augmedics to form its own LLC to successfully launch its technology. Twenty U.S. employees invested $4 million via AUG Management LLC. Existing shareholders, AO Invest and Terralab Ventures, participated in the financing round with a $3.2 million investment, and undisclosed investors converted the remaining $7.8 million SAFE notes.
“We are a team of problem solvers,” said Tim Murawski, President and CCO. “The creativity and ingenuity of our company began when Augmedics launched to solve a problem our founder saw in the operating room, and it runs through each and every employee who is working to make the vision a success. The global pandemic presented just one more hurdle for us to navigate as a team, and we believe it has only made the company stronger.”
Augmedics plans to explore additional surgical applications for xvision beyond spinal surgery. The system’s small footprint, economical cost and compatibility with current instrumentation is designed to allow easy integration into any surgical facility.