Houston-based startup Ictero Medical Inc. is developing a device for high-risk gallstone disease patients. Now, the firm aims to accelerate its growth with new funding.
Ictero raised $6 million in series A financing in a round led by Connecticut-based MedTex Ventures, Austin-based S3 Ventures and an undisclosed strategic investor, the firms announced April 29.
The Houston medical device startup aims to give patients with gallstone disease the benefits of invasive surgery without the associated risks. Ictero has developed a catheter-based device that delivers cryoablation therapy to effectively stop gallbladder functions without having to remove the organ. The device was designed for high-risk patients that would benefit from alternatives to surgery.
"Our technology provides an immediate solution for critically ill patients who currently have no good treatment options and also has the potential to benefit healthier patients who want to avoid surgery," said Matthew Nojoomi, co-founder and CEO of Ictero Medical.
Ictero plans to use proceeds from the series A round to invest in product and development and complete its initial clinical testing. The company also recently partnered with Houston-based Biotex Inc., a medical device development firm, to advance Ictero's clinical efforts through regulatory approvals. MedTex Ventures and Biotex are also partners, and MedTex will provide capital support to Ictero through its Biotex Medical Device Fund, in addition to other engineering and manufacturing resources.
"We are excited about working with the Ictero team to advance its technology, which we believe can significantly improve patient experiences and outcomes by providing a non-surgical alternative to treating gallbladder disease," said Ashok Gowda, CEO of Biotex.
Ictero was founded in 2018 through the Texas Medical Center's Biodesign program, which deploys post-grads in medicine, engineering, computer science and business into clinical settings to identify solutions to chronic issues in the health care industry.
"Ictero is at the forefront of pioneering cryotherapy for gallstone disease, and S3 Ventures is excited about the potential for Ictero’s novel solution to rapidly bring an impactful outcome to patients," stated Kim Rodriguez, venture partner at S3. "Our research suggests a substantial opportunity to help patients suffering from gallstone disease who are dependent on drainage catheters or too sick for surgery. We are joining a solid investment syndicate in supporting a very capable team."
Ictero is also a portfolio company of the Texas Medical Center Venture Fund, which co-led Ictero's $1 million seed round with Houston-based Texas Halo Fund. Earlier this year, the TMC board of directors approved another $50 million dedicated to the TMC Venture Fund over the next 10 years to further investments in digital health, medical device and other tech-enabled services for the health care industry.
S3 earlier this year closed its seventh fund at $250 million. The firm said it has more than $900 million in assets under management. S3 invests in sectors including business technology, consumer digital experiences and health care technology. Austin companies in its portfolio include Atmosphere and BrainCheck.
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