Clearwater Clinical Secures $6M Series A Funding to Advance Shoebox, the iPad-Based Portable Audiometer

Clearwater Clinical, a mobile medical device company based in Ottawa, Ontario, Canada, recently announced that it has secured $6 million in Series A financing. The round was led by Whitecap Venture Partners, an early-stage venture capital fund from Toronto, and followed on by BDC Capital Healthcare Venture Fund, a prominent Canadian healthcare venture fund that participated in the previous round. The company’s total funding now amounts to $9.5 million, marking three years since its last financing round in 2014.

Clearwater Clinical was founded in 2005 by ENT specialist Dr. Matthew Bromwich and CEO Michael Weider. Dr. Bromwich is an Associate Professor of Otolaryngology and Audiology at the University of Ottawa, holds staff privileges at the Children’s Hospital of Eastern Ontario, and is a Fellow of the Royal College of Physicians and Surgeons of Canada specializing in Otolaryngology–Head and Neck Surgery (ENT). The other founder, Michael, has over 20 years of software development experience. He established two startups, Watchfire and Blaze, which were acquired by IBM and Akamai, respectively. He is also an active angel investor. Clearwater Clinical was honored as one of the “Top 100 Global Digital Health Innovators” in 2016.

The company's two co-founders, Dr. Matthew Bromwich and Michael Weider

This 12-year-old company primarily offers three products: Modica, a HIPAA-compliant application that uses smartphones to capture medical images and store them securely in the cloud; ClearScope, an endoscope connected to Modica that leverages the high-definition camera on smartphones to record and share images captured during endoscopic examinations; and the company’s latest product, Shoebox, an iPad-based audiometer.

The Modica app and cloud services provide enhanced camera settings, such as zoom, focus, brightness control, and white balance, to ensure the highest-quality capture of HD photos and videos. These images are then stored in a separate, password-protected camera roll to prevent medical images from being mixed with personal photos. Subsequently, the images are automatically backed up to HIPAA-compliant cloud storage servers.

In terms of specific services, Modica offers two major conveniences. First, it allows annotation of images captured on mobile devices, such as adding names, dates, and other detailed notes, and even obtaining usage approval through in-app patient consent forms. This helps streamline record management processes. Second, it enhances collaboration through the sharing of medical photos and videos via mobile health platforms. Clients can easily access medical images, improving their ability to share and collaborate with colleagues, consultants, residents, and even patients. Such collaboration contributes to better patient outcomes, medical education, and remote consultations with other physicians. However, Modica also faces certain challenges, including concerns regarding security and compatibility.

Amine Benmoussa, Chairman of the BDC Capital Healthcare Venture Fund, commented on the partnership: “Current audiology infrastructure is insufficient to meet the needs of an aging population and the widespread prevalence of individual hearing loss. As an early investor, we are impressed by the company’s prior successes and the clear advantages of the Shoebox platform, and we look forward to supporting the team as it continues to grow.”

The Shoebox Audiometry System, described by Clearwater as the world’s first clinically validated, tablet-based portable audiometer, has received FDA approval for use by physicians. It is tightly integrated with the aforementioned cloud-based Modica data management system, enabling customers to gain insights from clinical data and analytics previously unavailable in traditional solutions. The system offers high accuracy and is particularly suitable for early hearing loss detection. The Shoebox Audiometry System allows nearly anyone to conduct hearing tests in a quiet environment. Following the financing round, the R&D department for Shoebox products will be expanded, with a focus on further development of the Shoebox product line.

Shoebox Audiometry System, Highly Portable

Company CEO Michael Weider stated in a press release, “Hearing loss is one of the most prevalent disabilities worldwide, affecting nearly 640 million people globally, yet there has been little innovation in audiometry over the past 50 years. The Shoebox Audiometry system meets significant market demand by providing a simpler and more cost-effective method for hearing tests. At Clearwater, we believe that leveraging the power and portability of software-based diagnostics and tablet technology can revolutionize the hearing health industry, making hearing tests accessible to everyone.”

Shoebox’s concept is to leverage mobile technology to provide a more affordable and portable platform for hearing tests. Built on the technology behind Modica, the company also enables secure storage of test data. In operation, the Shoebox audiometer offers both automatic and manual modes, including air conduction and masked bone conduction testing based on the Hughson-Westlake protocol, delivering accurate results even when used outside of a soundproof booth. Hearing data captured on an iPad can be backed up to a HIPAA-compliant web portal, providing a fast and convenient way to archive audiograms and patient information for easy management and review. It also allows for longitudinal tracking of patient outcomes and recording of patient data. Clearly, this web-based data management approach streamlines the workflow.

Currently, Clearwater enables audiologists and otolaryngologists to provide hearing tests to a broader population across more regions. Its client base spans industrial workplace testing, retail, pharmaceuticals, and multinational hearing care corporations, with operations in over 30 countries ranging from Mexico to Myanmar.