Enspire DBS Therapy Inc., the Cleveland Clinic spinoff developing a deep brain stimulation therapy for stroke patients, led Northeast Ohio venture capital deals in the third quarter, according to the quarterly Venture Monitor report.
Nationwide, venture deal value dropped during the third quarter to close to the lowest in six years, while deal count dropped to the lowest level in about three years, according to Pitchbook and the National Venture Capital Association, the authors of the quarterly report that lists the top investment deals in U.S. metropolitan areas.
Investors still are searching for equilibrium in a fluxing economy challenged by factors from generative artificial intelligence to geopolitics, the report authors said, seeking to lend context to the quarter's low deal value and count levels.
In Ohio, the Dayton area led deal values in the third quarter with $81.5 million, thanks largely to a $67 million investment in Aeroseal, a climate-tech startup with a system to reduce energy leaks to almost zero in some buildings, which was announced July 20.
The Columbus area was next with a quarterly deal value of $62.5 million, followed by the Cleveland-Elyria area with a deal value of $46.6 million.
Meanwhile, the Cleveland area tied with Columbus on the quarter's deal count with eight deals apiece, followed by the Cincinnati area with five deals.
Enspire DBS Therapy
In Cleveland, Enspire DBS's $17.6 million financing round was led by Cleveland Clinic, which spun off the deep brain stimulation technology in 2010.
JobsOhio Growth Capital Fund and an undisclosed investor also participated in the Series B fundraising for the clinical-stage company, which was announced on Aug. 1.
Enspire plans to use its new capital to start a clinical trial to assess the safety and efficacy of its implanted deep brain stimulation (DBS) and rehabilitation therapy to treat stroke patients who have weakness and reduced function in their arms, the company said.
Axuall
Axuall, the workforce intelligence startup in Cleveland, raised another $7 million in August to help health care organizations and clinicians leverage big data to solve their hiring inefficiencies, workforce shortages and onboarding delays.
The investment made by Frist Cressey Ventures of Nashville, Tennessee, is being added to the $20 million Axuall raised in its Series B round, which was announced on May 31.
The collaboration between Axuall and Frist Cressey Ventures represents a significant step forward in driving health care innovation, the workforce intelligence startup said in a statement.
S4 Medical
S4 Medical Corp. in Chagrin Falls raised $5 million to take its medical device through regulatory approvals and into production, likely by mid-2024.
The investment, which was led by an undisclosed "multinational strategic corporation," is part of S4 Medical's Series B funding round and includes an option to acquire the company if milestones are met, CEO Bill Fuller told the Cleveland Business Journal.
The financing is expected to support the U.S. and European regulatory approval of S4 Medical's Esolution device, which uses suction and deflection to move a patient's esophagus aside during ablation procedures, as well as manufacturing scale-up for a potential commercial launch of the device.
Here's a list of the top venture capital deals from Venture Monitor's third-quarter report, to the extent that CBJ could verify them:
