Chicagoland medical device company Augmedics bucked recent trends as one of the few startups to land Series D financing in 2023 after closing $82.5 million.
The round was led by Dallas-based CPMG with participation from current investors H.I.G. Capital, Revival Healthcare Capital, Almeda Ventures and others.
Based in Arlington Heights, Augmedics uses augmented reality to help doctors visualize a patient's 3D spinal anatomy, giving them what the startup dubs "X-ray vision."
With technology first used in a spinal surgery procedure by Johns Hopkins University surgeons in 2020, the medtech startup has now treated 4,000 patients using augmented reality and plans to continue to advance its technology and rapidly expand its U.S. commercial footprint.
Raising money in a down market
Augmedics' funding round comes as financing options continue to be limited for many startups compared with 2021 and 2022, according to PitchBook analysts' outlook on the venture market through the first half of 2023.
However, while seed-stage pre-money valuations are just as high as in 2021, Series C and D rounds were reported to be down the most with those companies struggling more than others to get capital.
Demand for capital for these late-stage companies is 2.8 times more than the available supply, much higher than the 1.3 times observed in the venture-growth stage.
After U.S. fundraising activity reached $168 billion in 2022 and $158 billion in 2021, PitchBook analysts found that 2023 has reserved that trend. They expect VC fundraising will fall between $120 billion and $130 billion in 2023.
