NeuWave Medical raises $14 million in venture funding [Milwaukee Journal Sentinel]By Kathleen Gallagher, Milwaukee Journal SentinelMcClatchy-Tribune Information Services
Sept. 06--NeuWave Medical, a Madison medical device company, said Wednesday it has raised $14 million in a second round of financing.
H.I.G. BioVentures, a new investor in the company, led the funding round, NeuWave said. Other investors include Venture Investors, the Wisconsin Alumni Research Foundation and the State of Wisconsin Investment Board.
NeuWave will use the money to further develop its Certus 140 thermal ablation system and continue developing minimally invasive tools for surgery and other medical uses.
The thermal ablation system provides a minimally invasive treatment that uses microwave energy to destroy tumor cells. It has been commercially available for 18 months, and about 1,500 patients have been treated with it, the company said.
The system is an alternative to surgery and is used in some cases with patients who are too sick to have surgery, said Scott Button, a managing director at Madison-based Venture Investors. It is currently used for lung, liver and kidney cancers, Button said.
The markets the company is serving represent about $1 billion worth of opportunity, Button said.
Neuwave was founded by two University of Wisconsin-Madison professors: Fred Lee, Jr., vice chairman of the radiology department, and Daniel van der Weide, a professor of electrical and computer engineering. Laura G. King, president and chief executive officer, previously led GE Healthcare's $1.2 billion global interventional cardiology and surgery business.
H.I.G. BioVentures is an affiliate of H.I.G. Capital, a Miami private equity firm with more than $10 billion under management. It invests anywhere from $3 million to $40 million in a company over the life of an investment, it said.
Venture Investors is in the process of raising a fifth fund and has received at least $70 million of commitments so far, the Journal Sentinel has reported. Among the firm's past investments were TomoTherapy Inc. and NimbleGen Systems.
Venture Investors recently participated in funding rounds for two Ohio companies: Aerpio Therapeutics and Juventus Therapeutics.
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