Velentium Medical lands growth investment from 1315 Capital
What's the deal? Velentium Medical, a Texas-based medical technology development and manufacturing company, has secured a growth capital investment led by 1315 CapitalDealroom has a profile for this one. Try Dealroom →. The Philadelphia-based healthcare private equity firm joins existing backer Great Point PartnersDealroom has a profile for this one. Try Dealroom → as a significant shareholder.
What does Velentium do? Founded in 2012 and based in Richmond, Texas, it provides end-to-end services — product strategy, research, design, automated test, cybersecurity, and manufacturing — for companies building active Class II wearable and Class III implantable medical devices.
What's the endgame? The company will use the money to expand commercial manufacturing, strengthen its product development and regulatory capabilities, and invest in automation and infrastructure. It also plans to pursue strategic growth across the medical device market.
Why now? Velentium has shifted from an engineering firm into a commercial manufacturer, anchored by a 50,000 square foot facility for complex wearable and implantable devices, said Eddie Hjerpe, principal at Great Point Partners.
"The medical device industry increasingly demands partners capable of supporting the entire product lifecycle, from research and development through commercialization and manufacturing scale-up," said chief executive officer Matt Hanks.
Who's backing it? 1315 Capital manages more than $1 billion in assets and provides growth capital to commercial-stage healthcare and medtech companies. "The strength of the management team and the quality of its customer relationships made this an easy decision," said Michael Koby, founding partner of 1315 Capital.
The signal: Outsourced medtech development and manufacturing is drawing private equity attention as device makers seek single partners to carry products from concept to scaled production. Velentium's move from engineering to commercial manufacturing positions it in one of medtech's more attractive segments.
Read more: business.theantlersamerican.com
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