Daniel Estay moved to Chapel Hill about six years ago, following a decades-long career in the medical device industry, which includes time running the cardiovascular business in Japan for a global, public company.
After a few years of consulting work in the Triangle, Estay came across an abstract in a vascular medicine journal focused on technology that was developed within the Joint Department of Medical Engineering Department at UNC-Chapel Hill and N.C. State. Estay was interested in the technology, based on his background involving vascular and cardiovascular devices and the potential market opportunity for a new, differentiated treatment of pulmonary embolism and deep vein thrombosis.
In 2018 Estay signed a license agreement to take the technology out of the university and form a company, SonoVascular, to carry it forward. The startup has since grown to eight employees, with plans to reach 12 or 13 over the next year. And it has raised about $5 million from early supporters, such as Carolina Research Ventures and the Wolfpack Investor Network, as the company completes its preclinical work.
Estay had previously been involved in early-stage companies, but this was his first time serving as a founder or CEO of a company – an opportunity that's always interested him. The transition from working at large health care companies like Abbott (NYSE: ABT) gave Estay the chance to leverage what he's learned in previous roles, while also taking on new challenges, such as fundraising.
Forming SonoVascular was also a bit of a return to Estay's roots. He began his career in the entrepreneurial environment of a family business run by his father, which focused on distributing and marketing medical devices in Latin America.
"When running a startup, it's very entrepreneurial," Estay said. "You have to pull on everything you've learned."
The startup is beginning to transition from a preclinical company to a clinical-stage organization. SonoVascular is aiming to raise more than $10 million for a Series A round in the fourth quarter of this year – Estay said the company is shooting for around $13 million – to support moving its medical device into human clinical studies.
It's a challenging funding environment for startups, although there are some signs it may be improving, but Estay is optimistic about the company's ability to pull off a Series A raise.
"I really believe in our technology and how it's different and better than what's out there," Estay said.
After raising funds, SonoVascular plans to complete initial human studies in New Zealand – a common path for medical device companies – near the end of July or early August in 2024. Following that, the company would look to complete a pivotal study in the U.S. in 2025 before seeking approval by the U.S. Food and Drug Administration, Estay said.
Assuming these studies are successful, Estay sees multiple long-term options for the company. Most medical device firms that successfully develop technology are acquired by larger organizations with an existing commercial infrastructure. However, given the size of the potential market opportunity, Estay said SonoVascular always has the potential to go public and commercialize its technology on its own.
"It's too early to say the best option," Estay said. "The good news is that we think both paths are viable."
