HealthTech Capital Announces Two New Investments in the Emerging HealthTech Market

Sep 15, 2011, 08:00 ET from HealthTech Capital

LOS ALTOS HILLS, Calif., Sept. 15, 2011 /PRNewswire/ -- HealthTech Capital, a Silicon Valley-based angel investing group that is pioneering the emerging HealthTech market, announced today that it has closed two new investment deals. PharmaSecure received more than $200,000 from HealthTech Capital members in a Series B syndicated venture round that included Gray Ghost Ventures and others, while Niveus Medical received $600,000 in a Series A syndicated financing of approximately $2 million, which also included Band of Angels, Life Science Angels, Sand Hill Angels, and other angel and venture capital groups. Today's announcement underscores the growing use of investment syndications to support early-stage companies that reduce healthcare costs through technology innovation.

"With healthcare costs continuing to spiral out of control, companies that decrease costs by leveraging new technologies are providing very attractive investment opportunities," said Anne DeGheest, a HealthTech pioneer with her firm Medstars and a cofounder and managing director of HealthTech Capital. "PharmaSecure and Niveus Medical are well positioned to be the next wave of successful HealthTech companies, and we are delighted to work closely with such great entrepreneurs."

"With the early-stage funding gap, HealthTech Capital is stepping up to syndicate, or pool, investments with other angel groups to fund early-stage companies," said Don Ross, HealthTech Capital cofounder and managing director and Sand Hill Angels board director. "In addition, HealthTech Capital accelerates its portfolio companies through their early stages by providing hands-on mentoring as well as investment dollars. With both PharmaSecure and Niveus Medical, HealthTech Capital members became involved long before the investments and will continue to provide added-value mentoring going forward."

PharmaSecure uses cell phone technology to combat the global problem of counterfeit drugs. On each bubble pack of pills, the company prints a unique code and phone number so consumers can verify the drug's authenticity with an SMS text message. PharmaSecure has significant traction in India, driven by recent legislation changes.

"HealthTech Capital's leadership and members are experienced investors with in-depth understanding of healthcare and technology and the intersection of the two industries," said Nathan Sigworth, CEO of PharmaSecure. "We are pleased that our product is achieving such global acceptance and appreciate having HealthTech Capital as an investor to help us with product expansion."

Niveus Medical is developing a technology to preserve muscle strength during long periods of sedation and bed rest. By reducing muscle debilitation, the company intends to shorten hospital stays, especially time in the intensive care unit, and provide significant cost savings.

"We are delighted to have HealthTech's participation in this funding round, which will help us validate the benefits our technology brings to patients, as well as the cost savings it can deliver to the healthcare system," said Brian J. Fahey, CEO of Niveus Medical.

About PharmaSecure

PharmaSecure is a global innovator in drug authentication technologies and software, creating effective solutions to ensure consumers receive authentic medications from trusted pharmaceutical manufacturers in emerging markets. Founded in 2007, PharmaSecure is a fast-growing company offering services in the United States, Europe, India, Africa, and Southeast Asia. The company is based in Lebanon, NH.

About Niveus Medical

Niveus Medical has developed a series of novel technologies to reduce or prevent debilitation and thereby accelerate patient recovery, shorten hospital stays, and reduce both hospital and payer costs. The company's solution is the first to prevent muscle deterioration in patients who are sedated and cannot participate in physical therapy. Early testing shows Niveus technologies to be easily used by nursing staff and well-accepted by patients. Niveus Medical is based in Palo Alto, Calif.

About HealthTech Capital

HealthTech Capital is a leading Silicon Valley-based angel investing group that is pioneering the emerging HealthTech market where digital innovation improves healthcare delivery and empowers patients. HealthTech Capital is led by proven investors and visionaries in health care and technology. Its members are industry leaders – successful entrepreneurs, executives, physicians and venture capitalists – with expertise in healthcare and new information and mobile technologies. In addition to funding and mentoring new companies, the group facilitates syndication with other angel investors, venture capitalists and corporations for funding and other opportunities. For more information on HealthTech Capital, please visit www.HealthTechCapital.com.

SOURCE HealthTech Capital



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