Augmedics, an augmented reality surgical-navigation platform, has raised $82.5 million in Series D financing led by CPMG. The funding round also included participation from Evidity Health Capital, as well as current investors Revival Healthcare Capital, H.I.G. Capital, Almeda Ventures, and others.
Augmedics’ flagship product, the xvision Spine System, received FDA clearance in 2019. This system utilizes augmented reality to provide surgeons with a 3D image of a patient’s spinal anatomy directly in their line of sight during surgery. This allows surgeons to focus on the patient instead of constantly referring to a remote screen. The company plans to use the funding to support its growth in the U.S. and expand its platform capabilities to drive widespread adoption of its technology.
Kevin Hykes, Augmedics’ president and CEO, expressed his enthusiasm for the funding round, calling it a testament to the company’s impact on the field of spine surgery. He highlighted that Augmedics has already impacted the lives of 4,000 patients. Hykes also stated that the company plans to continue leading the market in the adoption of augmented reality spine surgery.
Last year, Augmedics faced challenges due to the COVID-19 pandemic, which led to a nationwide decline in elective surgeries and a standstill in investor activity. However, the company managed to raise $15 million in Series B funding through a unique raising strategy. Augmedics’ employees formed AUG Management LLC and raised $4 million, with the remaining funds coming from existing shareholders AO Invest, Terralab Ventures, and undisclosed investors. In 2021, the company raised $36 million in Series C funding from an international syndicate of Israel-U.S. investors.
In March of this year, Augmedics announced new features for the xvision Spine System. These features include AI-enabled image enhancement functions and customizable views. Additionally, Augmedics expanded the system’s indications to include cervical and iliosacral procedures, joining its existing thoracic, lumbar, and sacral indications. This expansion allows the xvision Spine System to be used for surgeries involving the entire spine.
Augmedics is not the only company in the surgical space utilizing immersive technologies. California-based Osso VR, a virtual reality surgical training platform, raised $66 million in Series C funding in 2020 and an additional $27 million in Series B funding in 2021. These companies demonstrate the growing interest and investment in technology that enhances surgical procedures and training.
Overall, Augmedics’ recent funding round will provide the resources necessary for the company to continue its market leadership in the adoption of augmented reality spine surgery. The funds will support its expansion in the U.S., the development of new platform capabilities, and the drive for mass adoption of its technology.
