Auris Health Secures $220 Million in Equity Financing to Advance Next-Gen Monarch Robotic Platform

Recently, VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that U.S. medical device company Auris Health announced the completion of a $220 million equity financing round. The round was led by Partner Fund Management, with participation from new investors Wellington Management, D1 Capital Partners, and Senator Investment Group, while existing investors Mithril Capital, Lux Capital, and Viking Global Investors made additional investments.

Auris Health, Inc., formerly known as Auris Surgical Robotics, Inc., was founded in 2007 and is headquartered in California, USA. It is a medical device company specializing in the development of robotic technologies for medical applications. Many industry insiders may not be familiar with this company, despite the fact that this Silicon Valley startup has raised substantial venture capital funding over the past few years.

The company has maintained a relatively “low profile,” operating in stealth mode to quietly develop a suite of tools aimed at driving technological innovation in surgical robotics. Auris states that every element of its technology is designed with patient-specific considerations in mind, with the goal of preserving anatomical integrity. Previously, the company developed a novel dual-arm microsurgical system for ophthalmic surgery.

Image from Unsplash official website

In April this year, the company’s latest product, Monarch, received approval from the U.S. FDA. Monarch is a controller-operated robotic camera system. Through the Monarch platform, Auris aims to harness the power of flexible robotics to unlock new possibilities for endoscopic technology. Endoscopy involves using small cameras and tools to access the human body through its natural openings. The Monarch platform integrates the latest advancements in robotics, micro-instruments, endoscope design, sensing, and data science into a single system to improve clinical outcomes and reduce costs. The system features a controller interface that guides the integrated flexible robotic endoscope around the lungs, combining traditional endoscopic views with computer-assisted navigation based on 3D patient models. The platform is used for diagnostic and therapeutic bronchoscopic procedures.

Since its establishment in 2007, the company has made rapid progress in financing. In June 2009, Auris completed a $12.5 million debt financing; in March 2014, the company raised $34.4 million in its Series A round; in September 2015, Auris secured $149.5 million in Series B financing; in August 2016, it raised $49 million in Series C financing; and in August 2017, Auris obtained up to $280 million in Series D financing.

Following the completion of this funding round, the proceeds will be used to help support its next-generation Monarch robotic intervention platform. Auris Health stated that this financing brings the total capital raised for the Monarch surgical platform to $700 million, and noted that the company’s decision to keep its innovative technology under wraps for the past six years was intentional. The company remarked, “We didn’t want to make grand claims; therefore, we waited until we had developed a technology that could truly address the problem before going public with it.”

Dr. Frederic Moll, Founder and CEO of Auris, stated in the press release, “As Auris transitions into the commercial phase, the support from this group of world-class investors will play a significant role. We are pleased with the progress of the Monarch platform. This funding will enable us to continue our commercialization efforts in the field of bronchial disease applications and support our endeavor to pioneer the next era of medical interventions across a broader range of procedures.”

PFM, founded in 2004 and headquartered in California, USA, is a venture capital firm primarily investing in life sciences companies. Since its inception, the firm has led or participated in more than 20 investment deals.

Wellington Management, founded in 1970, is one of the largest private independent investment management firms globally, serving clients in more than 50 countries worldwide. The firm specializes in investment management, with strategies spanning global equities, fixed income, currencies, commodities, and alternative markets. It also provides portfolio companies and clients with asset allocation, multi-manager solutions, and specialized management approaches.

D1 Capital Partners, founded in 2017 and headquartered in New York, USA, primarily focuses on angel investing. Since its inception, the firm has completed two investments, with a total investment amount reaching $1.3 billion.

Headquartered in New York, USA, Senator Investment Group is a hedge fund firm that primarily provides services to pooled investment vehicles. Since its inception, the company has completed four investments.

Mithril Capital, founded in 2012 and headquartered in California, USA, is a venture capital firm investing in seed-stage and late-stage companies. The firm maintains a broad investment focus across industries and geographies, primarily backing enterprises with profound insights into technology and markets. Mithril Capital is committed to leveraging diverse technologies to help its portfolio companies tackle complex challenges and drive innovation.

Lux Capital, founded in 2000 and headquartered in New York, USA, is a research-driven investment firm focused on investing in companies within the physical and life sciences sectors. The firm’s investment team has invested in more than 20 companies and is committed to helping its portfolio companies cultivate industry leadership.

Viking Global Investors, founded in 1999 and headquartered in Connecticut, USA, is a global investment firm managing over $20 billion in capital, with offices in Greenwich, New York, London, and Hong Kong. On August 29, 2011, SinoCubate, a global financial advisory and investment company, acquired Viking Global Investors.