OrthAlign, Inc., a privately held U.S. based medical device and technology company, announced today the completion of a $15.0 million preferred series capital raise led by current OrthAlign investors, River Cities Capital Funds, a growth equity firm investing in healthcare and IT companies, and Mutual Capital Partners, a venture fund investing in rapidly growing, post-revenue technology businesses.
"River Cities has had the opportunity to watch OrthAlign’s technology platform mature, see the build out of its team, and to witness the impressive growth of the business over the past several years. We look forward to partnering with OrthAlign as the company continues to equip surgeons with the tools and information necessary to deliver their patients the highest quality care and consistency every time they operate," says Carter McNabb, River Cities Managing Director.
The growth capital will be used to launch the new hip product OrthAlign Plus®, increase OrthAlign’s sales and marketing activities, and continue its international distributor expansion. River Cities, Mutual Capital Partners, and the other preferred series shareholders have the ability to provide additional working capital to fund future growth initiatives as strategic opportunities arise.
OrthAlign’s precision alignment technology continues to grow in the global marketplace as more and more surgeons are seeing the value in its accuracy and simplicity. KneeAlign®, which provides both tibial and femoral navigation in a simple, palm-sized, single use device and is compatible with all implant systems, has already been used in more than 21,000 cases worldwide. OrthAlign Plus, which will be commercially available in early 2015, provides a revolutionary and cutting edge handheld alternative in navigation technology for Total Hip Arthroplasty surgery, allowing surgeons to consistently position the acetabular cup and confidently measure leg length and offset.
Wayne Wallace, a partner at Mutual Capital Partners, added, "We spoke with many of OrthAlign' s orthopedic surgeon, hospital, and distribution customers and were impressed with the enthusiasm expressed by key opinion leaders at world renowned medical institutions using OrthAlign technology. OrthAlign has the core technology and team needed to build a significant business in a large high-growth market. We look forward to helping the team and building on prior success in the orthopedic space.”
“It’s obvious that the orthopedics landscape is changing considerably. Further differentiation and technological advancement in joint products has become increasingly difficult. The market is now turning to surgical tools and technologies that will make surgeons more accurate, give them greater confidence through real-time data, and provide repeatability. OrthAlign is in a prime position to take advantage of this market opportunity by introducing new products, increasing the reach of our sales and marketing efforts, and expanding internationally,” said William E. Maya, OrthAlign’s Chief Executive Officer. “We are pleased that River Cities and Mutual Capital Partners share our vision and confidence in OrthAlign technology.”