The health care industry dominated venture funding for Atlanta companies this week.
Between Jan. 20 and Jan. 27, Atlanta-based businesses raised at least $8.1 million across two deals. Recipients of that funding were Oxos Medical Inc., a startup that provides hand-held X-ray machines, and MedTrans Go Inc., a company that helps healthcare facilities connect to services.
Those investments come as venture capital has seen a steady decline for multiple months. Georgia companies raised around half the amount of venture capital in 2022 they got the prior year. That is largely a result of investors changing focus from growth to profitability. Layoffs from tech companies have also occurred the past half-year to cut costs amid this market shift.
A concentration of venture capital into health-focused startups shows the industry’s capability to show perseverance amid economic headwinds. Most VC investors anticipate raises in health-focused technologies to be roughly on par this year with 2020, possibly raking in as much as $25 billion, business news site Fierce Healthcare reports.
Here are the venture deals you might've missed this week:
- Oxos Medical Inc., a medical device startup that produces a hand-held and cloud-connected X-ray machine titled Micro C, added $5.8 million to a previous raise of $2.3 million, according to a filing with the U.S. Securities and Exchange Commission. As of May, the company had raised around $20 million. Approximately 90% of those investments were made by over 80 individual medical professionals based in Atlanta and Savannah. It is led by CEO Evan Ruff, who co-founded the company with Dr. Gregory Kolovich. This month, Atlanta Inno chose OXOS as one of the 23 Startups to Watch in 2023.
- MedTrans Go Inc., an Atlanta health technology startup, raised $2.3 million, according to an SEC filing. The company is a marketplace for healthcare facilities to find transportation, interpreter services, delivery and telemedicine options to avoid canceled healthcare appointments. It is led by CEO Dana Weeks who founded the company in 2017 with Obi Ugwonali. The latest raise brings the company’s total funding to at least $5.5 million. Previous investors in the company include Morgan Stanley (NYSE: MS).
