Marietta-based medical device company Artelon has secured $20 million in Series B funding to support the commercial growth of its proprietary bio-textile for surgical repair of ankles and other joints.
Venture capital firm Vensana led the round of financing for Artelon's soft-tissue reconstruction material. Artelon expects additional funding from existing investors.
The $20 million will allow the 35-employee company to scale up its commercial growth by adding to its sales team. The company will also continue to refine its product and develop new applications for it, Artelon CEO Aaron Smith told Atlanta Business Chronicle.
The United States market for treating ankle instability provides a $2 billion opportunity and few companies work in that space, Smith said, noting ankle sprains are a top reason for emergency-room visits.
Smith views the new funding as an endorsement of Artelon’s value despite the recent downturn in venture capital funding of startups.
“The capital markets have been a little troubled and venture funds are making investments, but they're being a lot more choosy on what they choose to invest in,” he said.
Artelon recently signed a lease for a 20,000-square-foot facility in Sandy Springs, where it will set up shop this fall. The new home will include lab space, Smith said.
“We have our own bio-material that's been developed over 30 years and has been tested pretty extensively in lab research and human clinical research,” Smith said. The company also sells kits that include everything surgeons need to complete ankle repair using the material.
Ankle repair using Artelon’s Dynamic Matrix technology allows people to get back to work and play much faster, Smith said. The material supports the healing process and dissolves in the body over a period of five to six years.
“The type of manufacturing we do requires expertise in chemistry and polymers and, at times, textile engineering," Smith said.
The company has been able to find well-educated workers to meet its needs and benefitted from the presence of Emory University and Georgia Tech in Atlanta.
But the company had to look outside the city for this funding round, Smith said. Vensana, the company’s latest investor, has offices in Minneapolis and just outside of Washington D.C. Founded in 2019, Vensana has also invested in Nyra Medical, an Atlanta startup developing technology to repair heart valves.
“We love Atlanta .... I think we're going to continue to be here for a long time as a growing company and employer,” Smith said.
