ValenTx Completes Series A-1 Financing
ANN ARBOR, Michigan - EDF Ventures today announced the successful completion of a Series A-1 round of venture funding for ValenTx, Inc., an early stage medical device company focusing on less invasive treatments for morbid obesity. EDF led the round which included Sapient Capital, Affinity Capital Partners, Kaiser-Permanente Ventures and T-Gap Ventures.
Obesity is a major health issue, impacting 20% of the U.S. population and often accompanied by dangerous side effects including diabetes, hypertension, and cardiovascular disease. While changes in diet and exercise can be effective for some percentage of this population, those classified as morbidly obese (body mass index over 40) typically require some form of therapeutic intervention in addition to long term changes in life style. This can be a combination of therapies and surgical intervention. The latter is typically a form of restriction of the stomach, created through bariatric or Roux-en-Y gastric bypass surgery or the surgical installation of banding, balloons, or other restrictive devices. Even with available alternatives, the obese population continues to expand at a rate that health experts cite as alarming. This environment has inspired a short list of venture-capital financed companies, including ValenTx, which are developing a variety of implantable devices.
Mary L. Campbell, general partner of EDF Ventures said, "This truly is a large and rapidly growing market with many discouraging statistics: Over 60 million people in the U.S. are obese; of these, over 25% are morbidly obese. Alarmingly, obesity is rising rapidly among our young people."
Mitchell Dann of Sapient Capital, a leading investor in the formation of companies to develop novel medical devices, led the effort to found ValenTx along with several Sapient advisors and investors. Commenting on the transaction, Dann stated, "Obesity treatment consumes nearly 10% of our healthcare costs and yet continues to impact an ever greater population. While changes in life style must be supported, medical intervention seems to be a requirement as well. We are very excited about this next stage of our company's growth."
Following the completion of the financing, ValenTx recruited James Wright to become its president. Wright, a seasoned medical device executive, notes, "The opportunity to have a favorable impact on the lives of so many energizes our efforts to bring this product forward as soon as possible."
The funding will be used to build out the team and to continue the Company's product development work. ValenTx is located in Santa Barbara, California.
ValenTx is an early stage medical device start up company focusing on less invasive treatments for morbid obesity. The Company has an extensive patent portfolio and is advised by leading experts in the field.
Mary L. Campbell
734.663.3213 ext. 307
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