Company’s devices close blood vessels after medical procedures
Updated Feb. 20, 2018 5:56 p.m. ET
Cardiva Medical Inc. is the kind of company that can attract investors in a slow market for cardiovascular venture investment.
Last year venture funding for heart disease treatments sank to under $664 million, the lowest since the $609 million recorded in 1999, according to market tracker Dow Jones VentureSource. The decline has come as many venture firms have exited medical-device investment because of a struggle to make returns.
Going public is difficult for most device companies unless they have significant revenue, and consolidation of the top medical-technology names has reduced the number of potential startup acquirers.
Cardiva isn’t a typical startup. The company has a marketed product and another in the pipeline. As a result, it has just added $11 million in equity and debt to a $30 million financing round disclosed last March. The Santa Clara, Calif., company raised the funds with an eye toward expanding its share of the market for devices that close blood vessels after medical procedures.
Companies such as Cardiva and Abbott Laboratories market devices that close the artery so patients can get up and walk sooner. Cardiva’s product, launched in 2014, has also been shown to reduce bleeding.
Now Cardiva wants to close femoral veins as well, and is preparing a clinical trial.
The breakdown between equity and debt in the new $11 million financing is undisclosed. Investors joining this new financing include return backers Canepa Healthcare, affiliates of Luther King Capital Management and PTV Healthcare Capital.
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