[Editor's note: This story has been updated since its original posting.]
Abilitech Medical has scored yet another win.
The company – which took home a Tekne Award last month and the top prize in the 2019 Minnesota Cup competition in October – has closed on a $7.4 million investment round. The three largest investors were Bios Partners, DEFTA Partners, and EFO Holdings. Minnesota investors included the SE MN Capital Fund and the Sofia Fund, a Minneapolis angel investment firm focused on women-led businesses. Iowa-based Fin Capital also contributed funds.
The funding is aimed at accelerating commercialization of the Abilitech Assist, a medical device designed to restore mobility for people with upper-arm limitations caused by muscular dystrophy, multiple sclerosis, and spinal cord injury.
Abilitech plans to continue fundraising into 2021.
The company hasn’t yet gained clearance from the Food and Drug Administration, but it expects to receive that in 2020.
“We've watched Abilitech for three years and witnessed its team cross a threshold in product development and efficacy that will make the Assist device a reality in the new year,” said Cathy Connett, CEO and partner of the Sofia Fund, in a statement.
She notes that the device may tap into “economic opportunities, too.” That includes reducing costs of care and reliance on personal care assistants, Connett said.
“The timing of the launch is relevant in today’s economic environment,” she said, adding that there’s a “significant shortage” of personal care attendants.
Abilitech Medical CEO Angie Conley launched her company in late 2016. Before the most recent fundraising round, she secured $10 million, most of it from investors in Texas.
The Sofia Fund’s other investments include Alzheimer’s drug company Cognition Therapeutics Inc., wellness solutions firm Joy Lux Inc., and mobile marketplace kidizen.