RxFunction Inc., a medical device company behind a high-tech shoe insert for preventing falls, has secured $5 million, half of the total $10 million in equity financing its seeking, according to a recent securities filing.
The Eden Prairie-based company makes Walkasins, a device that connects shoe-inserted pads with a leg cuff that vibrates when a person shows signs of imbalance while walking. The prescribed device is designed to replace nerve sensation to avoid falls for those with sensory peripheral neuropathy, a condition that causes numbness and weakness in hands and feet.
The fundraise began near the end of October, with one investor. Edina-based Cedar Point Capital helped facilitate the equity sale, according to the filing. A representative for RxFunction declined to comment.
RxFunction was founded in 2010 by Lars Oddsson and Dan Leach as a startup, according to a Business Journal report. The company created and tested its product with funding from the National Institutes of Health.
In 2018, the company raised $7.5 million to fund clinical trials for its device and get it ready for launch, the report said. A year later, Walkasins hit the market, according to the company's website.
Since then, the company has raised funds in other rounds, including for $4 million in 2020, according to securities filings.
The devices are manufactured in Minnesota, RxFunction says.
The company is led by CEO Mary Anderson, who previously served as its chief financial officer. Anderson also formerly held executive positions at Minneapolis-based Tactile Medical (NASDAQ: TCMD) and Advanced Respiratory Inc., a St. Paul-based medical-device maker. She took over as CEO of the company in 2020, succeeding previous CEO Tom Morizio.
