Exo, pronounced “eco,” raised a new cash injection of $ 220 million in Series C financing to market its portable ultrasound device and point-of-care workflow platform, Exo Works.
The round was led by RA Capital Management, while BlackRock, Sands Capital, Avidity Partners, Pura Vida Investments and previous investors joined.
The new financing gives the Redwood City, California-based company more than $ 320 million in total investments since the company was founded in 2015, Exo CEO Sandeep Akkaraju told TechCrunch. This includes a $ 40 million investment raised in 2020.
Ultrasound machines can cost between $ 40,000 and $ 250,000 for low-end technology and millions for high-end machines. Meanwhile, the Exo device will be around the cost of a laptop.
“It is clear to us that ultrasound is the future, it is not radiant and has no harmful side effects,” Akkaraju said. “We want to take the technology and put it in the palms of the doctors. We also want to bring it to the patient level. The beauty of having this window to the body is that you can see things right away. “
Using a combination of artificial intelligence, medical imaging, and silicon technology, the device enables users to use it in various real-world medical settings, such as evaluating cardiology patients or scanning the lungs of a COVID-19 patient. Patients can also use it at home to provide real-time information after a surgical procedure or to monitor a certain condition.
Then Exo adds its Exo Works, the workflow platform, which streamlines exam review, documentation, and billing in less than a minute.
Akkaraju said the company’s immediate focus is to market the device, which is where most of the new funding will go. It also intends to build its computing platform that is being tested throughout the country and increase both production and its sales force.
The global market for point-of-care ultrasound it is expected to reach $ 3.1 billion by 2025 and will grow 5% annually during that period. Besides the doctors, Akkaraju has heard from other hospital workers that they too want to use the ultrasound device for some of their daily tasks, such as finding the correct vein for an IV.
Once the company’s device is approved by the US Food and Drug Administration, Exo will go ahead with its plan to bring the portable ultrasound device to market.
Zach Scheiner, head of RA Capital Management, said he met the Exo team in 2020 and RA made its first investment in the Series B extension later that year.
The technology and the opportunity to scale “drew him right in.” Scheiner also met Akkaraju over the months and saw how Exo’s technology was improving.
“We are seeing an expanding opportunity in healthcare technology as it improves and costs go down,” he added. “Sandeep’s vision of democratizing ultrasound is not a vision that was possible 15 or 20 years ago. We see the market in its early stages, but we also recognize the potential. Every doctor should want you to see what you couldn’t see before. As technology and biology improve, we will see this sector grow ”.