Venclose Secures $27M Series C Funding to Advance Next-Gen RF Ablation System for Venous Reflux Disease and Files IPO Prospectus

VCBeat (WeChat ID: vcbeat) has learned that on December 3, 2019, medical device company Venclose announced the completion of a $27 million Series C financing round, led by Ally Bridge Group (ABG). The funds will be used to invest in Venclose’s new product portfolio, advance its commercial layout in the United States, and accelerate its global market expansion.

Venclose, founded in 2014 and headquartered in California, USA, is a privately held medical device company dedicated to innovating treatments for venous reflux disease. The company effectively treats venous reflux disorders by providing reliable, safe, and effective radiofrequency ablation options for patients with chronic venous insufficiency and by establishing partnerships with physicians.

Venous Reflux Disease, also known as Chronic Venous Insufficiency (CVI). CVI is a progressive medical condition often associated with varicose veins, affecting approximately 10% of adults worldwide, including over 40 million adults in the United States alone.

The VENCLOSE system, developed by the company, is a next-generation leading radiofrequency (RF) ablation system designed to close diseased veins in patients with venous reflux disease and restore blood flow through healthy veins. The workflow of the VENCLOSE system involves the physician inserting a small catheter into the affected vein; the catheter delivers heat to cause the vein to collapse and seal. After the catheter is removed, blood flow naturally reroutes to nearby healthy veins. Following the procedure, the physician applies a bandage to the patient. Compared to previous generations of venous RF ablation technologies, the VENCLOSE RF ablation system offers a broader range of capabilities and is currently marketed in the United States and Europe.

Jerry Gibson, Chairman and Chief Executive Officer of Venclose, stated, “Securing this financing further validates investor confidence in Venclose’s strategic direction. Following the achievement of our third-quarter milestones, we have established high-volume catheter manufacturing capabilities with our strategic manufacturing partner, Viant Medical. Our competitive position and revenue momentum continue to strengthen, enabling us to address unmet medical needs and help patients undergoing treatment for venous reflux disease achieve better clinical outcomes.”

Frank Yu, Founder and CEO of Ally Bridge Group, stated, “With Venclose’s outstanding next-generation products, we are delighted to add Venclose to our leading medical technology portfolio after leading a $365 million financing round for two other life sciences companies. We are pleased to fund Venclose’s commercialization efforts in the United States and globally, as it also continues to invest in expanding its product portfolio.”

ABG, established in 2013, is a Hong Kong-based private equity and venture capital firm dedicated to investing in life science sectors such as medical technology and biopharmaceuticals, with a proven track record of supporting high-growth, innovative life science companies. ABG and its affiliates manage over USD 3 billion in private and public life science assets across the United States, China, and Europe.

(Compiled by Jiang Ying)