Vascular Dynamics, a portfolio company of the Israeli medical-device investor Rainbow Medical, said Thursday it had raised the first half of a $16.9 million investment round.
The company, a maker of minimally invasive solutions for the treatment of hypertension, said it had raised $8.4 million and would get the second half of the amount when it achieved certain clinical milestones, said VDI, which is based in Mountain View, California.
The round was led by HBM Healthcare Investments, joined by existing investors Rainbow, the MedFocus Funds and another existing investor it didn’t identify. The fundraising brings the total capital VDI has raised since it was founded in Israel in 2008 to $30 million.
“This financing will allow the company to complete its European and U.S. safety studies and prepare for our pivotal U.S. clinical study,” said VDI CEO Robert Stern.
VDI’s MobiusHD causes peripheral blood vessels to dilate, thereby reducing blood pressure. Resistant hypertension, which is blood pressure that remains high in spite of concurrent use of three antihypertensive agents and therefore must be treated by a non-drug solution, affects about half the 80 million Americans with high blood pressure.
Rainbow is led by Yossi Gross, an investor of medical devices with some 500 patents to his name; Leon Recanati, founder of the private equity fund GlenRock Israel; and Efi Cohen-Arazi, a medical industry executive. VDI’s technology was developed by Gross.