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PROPEL Company Attune Medical Closes $10 Million Series C Financing

CHICAGO–(BUSINESS WIRE)–Chicago-based medical device firm Attune Medical has closed a $10 million Series C financing with participation from existing investors, several associates, and new investors. Attune will use the fundraise to support continued revenue growth in the North American market and expansion across key markets worldwide of its EnsoETM esophageal temperature management product line. The EnsoETM is the only patient temperature management system approved for use in the esophageal environment for whole-body temperature modulation, including both warming and/or cooling.

The Series C Financing features continued participation by existing investors such as the Gopher Angels, the Heartland Angels, and TWB Investment Partners, along with many Attune Medical associates. New investors include the PFG Group, plus several other private investors.

“Being located in Minnesota, one of the more significant medical device hubs in the world, our investment team reviews many device investment opportunities,” commented David Russick, Founder of Gopher Angels.

Paul Hansen, former President of 3M Mexico, and member of Gopher Angels, notes “We are investing significantly in Attune Medical for the third time based on the strength of the company’s continued overall market uptake, increasing use on a per-hospital basis, and accelerating expansion into warming applications in the OR for longer, more involved cases when patient warming is a challenge. We are proud to continue to support Attune Medical’s groundbreaking work in improving temperature control for patients.“

John Schreiner, a member of the TWB Investment Partnership and the Perkins Coie attorney who represented Attune in the financing, commented, “Attune Medical’s EnsoETM is shifting the paradigm in targeted temperature management solutions in the healthcare space. This simple, cost-effective and safe platform represents a new, and we think better, option for clinicians who need to cool or warm patients.”

Attune Medical’s Chief Operating Officer, Keith Warner, commented, “This funding from investors sends a strong statement with respect to their confidence in Attune’s success as well as our opportunity for continued growth. Attune’s proven product requires no additional capital equipment purchase, and we are pleased to report continued adoption by a growing number of major hospitals in the U.S. and around the world.”

Formerly known as Advanced Cooling Therapy, Attune Medical has developed proprietary medical device technology that simplifies access to the patient’s core to efficiently control core temperature. Whether warming or cooling, the company optimizes, or “tunes,” patient temperature safely and effectively. Attune’s initial product, the EnsoETM (formerly Esophageal Cooling Device or ECD), is designed to modulate and control patient temperature through a single-use, fully-enclosed system that is inserted into the esophagus. Two lumens attach to an external heat exchange unit while a third, independent, lumen simultaneously allows gastric decompression and drainage. The EnsoETM can be rapidly placed by most trained healthcare professionals, in similar fashion to a standard gastric tube, and can be used to control patient temperature in the operating room, recovery room, emergency room, and/or intensive care unit. No other products on the market are approved to use the esophageal environment for whole-body temperature modulation.

Attune Medical (as Advanced Cooling Therapy) received US FDA de novo clearance for the EnsoETM (Esophageal Cooling Device or ECD) in 2015 for use with the Medi-Therm III by Stryker®. The company received FDA 510(k) clearance in 2016 for use with the Blanketrol® II and III Hyper-Hypothermia systems made by Cincinnati Sub-Zero, a Gentherm Company, and FDA 510(k) clearance for use with the Altrix System by Stryker® in 2017. It received its CE Mark in Europe in 2014, with an expanded indication for use up to 120 hours in 2016 and a CE Mark for use with the Altrix System by Stryker® in 2017. It is also licensed for sale in Canada and Australia.

ABOUT GOPHER ANGELS: Gopher Angels is a network of accredited investors seeking to invest capital and expertise in early stage Midwest-based businesses. Gopher Angels members are experienced entrepreneurs, business leaders, and investors who have helped build successful businesses, particularly in the arena of life sciences and medical devices. Gopher Angels members have diverse industry and business expertise, resulting in a well-rounded and networked group of experience and talent.

ABOUT HEARTLAND ANGELS: Heartland Angels is an open network of individuals looking to assist seed and early stage companies in obtaining investment capital and in furthering their innovations. Our mission is to be a catalyst in the process of innovation. We do this by creating forums in which human, intellectual and financial capital are joined for a common purpose.

ABOUT TWB INVESTMENT PARTNERSHIP: TWB Investment Partnership is an investment vehicle comprised of accredited Perkins Coie attorneys. With more than 950 lawyers in 19 offices across the United States and Asia, Perkins Coie represents great companies across a wide range of industries and stages of growth—from start-ups to FORTUNE 50 corporations.

ABOUT THE PFG GROUP: The PFG Group, LLC is a Chicago based team of highly experienced and successful entrepreneurs seeking to invest in or acquire emerging growth companies.

Contact for Attune Medical
Lisa Owens, 210-601-6647

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PROPEL Awards Grants to 5 Illinois Medtech Companies for the 2017 MedTech Conference

PROPEL Companies Raise $10 Million in 1H2017

PROPEL, dedicated to increasing the number and success rate of early-stage life sciences companies in Illinois, announced today that it has awarded 5 grants to help Illinois entrepreneurs attend the 2017 MedTech Conference in San Jose, California.  The MedTech Conference is the leading medtech conference in North America, bringing together thousands of medical technology professionals in a uniquely multifaceted environment for business development, innovative technology presentations, world-class educational opportunities, and networking with policymakers, business executives and industry leaders.  The MedTech Innovator Showcase series will feature the most promising medical device, diagnostic and digital health technologies to industry leaders and investors at the 2017 MedTech Conference under common technology themes.

“The MedTech Conference is the perfect opportunity to meet with strategic partners and investors to show our functional device in a face-to-face meeting,” said Tyler Wanke, CEO of Innoblative, a Chicago-based medical device company developing innovative advanced energy medical devices including Sira™, a Saline-assisted Intraoperative Radiofrequency Ablation device that uses bipolar current to intraoperatively create a controlled zone of ablation and coagulation, and Sira-S™ an advanced energy platform that uses artificial intelligence to deliver optimized zones of treatment. “Innoblative is grateful to PROPEL for this grant to support us in this year’s Innovation Showcase – and throughout the year.”

PROPEL awarded grants to help some of its portfolio of Illinois early-stage medical device and medtech companies participate in the conference’s Innovation Showcase, as well as grants to attend the conference itself. In addition to Innoblative, PROPEL grant recipients include Briteseed, NovaScan, Preora Diagnostics and Visura Technologies.

“The MedTech Conference provides many opportunities for early-stage life sciences companies, from strategic partner and investor conversations to education and networking.  But often, the cost of registration can be high to bootstrapping startups,” said Barbara Goodman, senior vice president of PROPEL.

“At this year’s MedTech Conference we’re looking at ‘What’s Next’ for innovation and patient care, and thanks to PROPEL, some of the most cutting-edge startups from Illinois will be able to make the connections they need to bring their medical advancements once step closer to market,” said Ashley Wittorf, executive director of AdvaMed Accel. “PROPEL’s support of startups throughout Illinois dovetails well with AdvaMed Accel’s mission to strengthen the pipeline of small medical technology companies, and we are proud to work together this year and for many years to come.”

PROPEL’s active companies raised $80 million in new funding during 2016 and $10 million during the first half of 2017.  Since its launch ten years ago, PROPEL has funded over $1.3 million in grants and awards in programs including MedTech Conference registration grants.  PROPEL’s active portfolio of companies have raised more than $200 in new funding for every $1 that PROPEL has awarded.

Funding for PROPEL and its grants to attend the 2017 MedTech Conference comes from a grant from:

For more information on the 2017 MedTech Conference, visit www.themedtechconference.com.

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Illinois Reauthorizes and Extends Angel Investment Tax Credit

iBIO and PROPEL applaud Governor Rauner, together with the Illinois House and Senate, for approving SB 2012 reauthorizing and extending the Illinois Angel Investment Tax Credit to December 31, 2021.

The Angel Investment Tax Credit Program expired on December 31, 2016. It offered a tax credit to qualifying firms in an amount equal to 25% of their investment made directly in a qualified new business venture. The Angel Investment Program was capped annually at $10 million worth of tax credits.

SB 2012 extends the credit until December 31, 2021 and makes several other related changes to the credit and to the program.

Some of the additional changes include additional reporting requirements, expanding eligibility to investments made in minority-owned businesses and counties with a population with not more than 250,000 where the qualified new business venture is located.

“Since 2011, the Angel Investment Tax Credit Program has provided more than $30 million in early-stage investments for more than 30 Illinois life sciences start-ups, including one-third from PROPEL’s portfolio,” says John Conrad, Executive Vice President, iBIO, “Startup companies like Endotronix have been able to leverage the Angel Investment Tax Credit Program to raise significant funds and create new jobs in Illinois.”

“The Illinois Angel Investment Tax Credit Program was critical to the growth and success of Endotronix,” says Endotronix CEO and Co-Founder, Harry D. Rowland. “Several years ago we faced pressure to take advantage of tax programs and early stage support from other states. The allure of funding almost took us out of state. Fortunately, the Angel Investment Tax Credit Program in Illinois served as a stimulus to several angel investment groups throughout the state. Investments from these Illinois angel investors at a critical time allowed Endotronix to achieve key technology milestones and laid the foundation for future growth of the company. We now have 50 employees and continue to grow.”

SB 2012 is a result of extensive discussions and negotiations among the Illinois Department of Commerce & Economic Opportunity, Lieutenant Governor’s Office and iBIO. As such, SB 2012 is supported by all of the aforementioned parties. iBIO would also like to recognize the congressional leadership from Senator Chuck Weaver, Representative Carol Sente, and Representative Elgie Sims.

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iBIO Institute’s PROPEL Center Celebrates 10 Years and Looks to Future with New Awards Program

Fundraising campaign to create SBIR/STTR Matching Awards available for PROPEL’s portfolio companies

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iBIO Institute’s PROPEL Center Announces EDGe Surgical Business Plan Competition Winner at the 2017 iBIO IndEx

15 Illinois-Based Life Sciences Startups Present During iBIO IndEx

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iBIO Institute’s PROPEL Startups Raise $80 Million in 2016, Total Capital Raised Now $265 Million

PROPEL Awarded Up To $800,000 From the Searle Funds At The Chicago Community Trust For 2017

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iBIO Institute’s PROPEL Center Is Winner of U.S. SBA’s Growth Accelerator Fund Competition

$50,000 Prize to Support PROPEL’s SBIR/STTR Programs

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PROPEL Awards 6 Startups Grants to Attend AdvaMed 2016

PROPEL Companies Raised $50 million 2016YTD

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PROPEL Announces NovaScan Business Plan Competition Winner at the 2016 Innovation Showcase

PROPEL, dedicated to increasing the number and success rate of early-stage life sciences companies in Illinois, announced on April 19 at the 2016 Innovation Showcase on Day 1 of iBIO IndEx that NovaScan won the 2016 PROPEL Business Plan Competition. Over 300 community members watched Craig Davis, CEO of NovaScan, give the winning presentation to life sciences financial investor judges.  PROPEL awarded NovaScan a $15,000 cash prize at the end of Tuesday’s event. Congratulations to Craig and the entire NovaScan team!

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