Neuraptive Therapeutics Secures $11.5M Series A Funding to Advance AxoFuse Nerve Repair System into Clinical Trials

VCBeat (WeChat ID: vcbeat) learned from foreign media reports that on December 19, Neuraptive Therapeutics, a startup specializing in neurorestorative biotechnology, announced it had raised $11.5 million in its Series A financing round. The round was led by New Rhein Healthcare Investors, a private equity firm based in Lafayette.

Neuraptive plans to use the newly raised funds to support clinical trials of the AxoFuse nerve repair system and expand its business.

Neuraptive is a neurorestorative biotechnology startup headquartered in Colorado, USA, founded by David Jackson in 2016.

In 2017, Neuraptive secured $1 million in seed funding from the Central Texas Angel Network, which was primarily used to develop the company’s flagship product—the AxoFuse Nerve Repair System—and to expand its business operations.

Generally, when peripheral nerves are severed or compressed, patients immediately lose sensation and function. Shortly after injury, the damaged portion of the patient’s nerves undergoes degeneration, and recovery relies entirely on natural regeneration. Modern surgical techniques facilitate the natural regeneration of nerves; however, no current technology can enhance the speed or quality of recovery from nerve injuries. Consequently, patients with peripheral nerve injuries often experience long-term or permanent disability.

The AxoFuse Nerve Repair System is Neuraptive’s novel therapeutic product, designed to improve outcomes for patients with peripheral nerve injuries through standard nerve repair surgery. Preclinical studies indicate that, compared with conventional nerve repair and natural regeneration, the AxoFuse System shortens recovery time and enhances stable functional restoration.

Image source: Neuraptive official website

“Compared with the current standard of care, AxoFuse has the ability to significantly improve patient prognosis. By reconnecting partially severed axons, AxoFuse can prevent neurodegeneration and limb atrophy, which will significantly enhance the speed and quality of recovery, offering substantial benefits to patients,” said David Jackson, Co-founder and CEO.

In 2019, Neuraptive planned to conduct clinical trials for the AxoFuse Nerve Repair System.

Co-founder and Chairman of the Board Gino DiSciullo stated in a company announcement: “This is the first product designed to maintain the downstream neural network following peripheral nerve injury, which can significantly accelerate patient recovery and improve functional outcomes. We believe this product will redefine the standard of care for peripheral nerve injury treatment and has broad applicability in surgical reconstruction involving nerves.”

New Rhein Healthcare Investors (New Rhein), founded in 2010 and headquartered in Chicago, USA, is a private equity investment firm focused on medical therapies and medical devices, primarily investing in companies with clinically validated products.

New Rhein’s partners and principals are former industry executives with extensive operational and transactional experience. They have assembled a team of operationally focused investors to build a broad network that supports portfolio companies in development, regulatory affairs, reimbursement, marketing, and contract manufacturing.

Central Texas Angel Network (CTAN), established in 2006 and headquartered in Texas, USA, is an angel investment group. CTAN has a total of 29 investment records, with two capital exits.

The company is dedicated to providing early-stage investment opportunities to accredited angel investors in Central Texas, while assisting entrepreneurs and early-growth companies by offering premium resources such as capital, information, networks, advisory services, and education.