Synoste Oy raises € 2.2 M in the first closing of A-round financing to acquire CE-approval for a next generation implant for correcting skeletal deformities
May 6, 2015
Synoste Oy, a Finnish medical device company is developing a next-generation of patient friendly implants for the correction of skeletal deformations. Synoste’s proprietary technology will act as a platform for a range of long and short bone, spinal, and craniomaxilofacial applications providing solutions for millions of patients and their families across the globe.
Synoste has now raised A-round financing of € 1.2 M which will be used to fund clinical trials needed for regulatory approval (CE Mark) for sale of their first product in Europe. The funding was raised from existing investors High-Tech Gründerfonds (HTGF), Finnvera, Lifeline Ventures, Mectalent Oy and existing business angels joined by new investors Metsola Ventures, and Mr Petri Pöyhönen. In addition Synoste has received € 1.0 M European Eurostars grant raising the total value of the round to € 2.2 M.
“We have identified new market opportunities as well as documented good progress in our product development process over the past two years. We remain on schedule for our clinical trial, and we are grateful for the trust and continued support from our existing investors and new business angels” says Synoste’s CEO and co-founder Harri Hallila.
Currently there are a range of complications related to the two approaches used to correct skeletal deformities: (1) external fixators, exhibit higher levels of post operation discomfort and infection, and (2) the 2nd generation implants have a number of reliability, stability, and compliance issues.
Synoste’s competitive advantage is built on their proprietary technology, which was developed at Aalto University in Espoo and ORTON Orthopaedic Hospital, overcomes the traditional limitations and enhances patient comfort and compliance.
“Synoste’s product technology represents the first of a 3rd generation of implants, which will cause a disruptive change in the management of patients with bone deformities and those seeking cosmetic limb lengthening” comments Director of Business Development, Michael Piccirillo.
“Having worked with the Synoste team and seeing the team and product take shape, we decided to increase our commitment in the funding at this very exciting point in the development of the company”, said both Olli Karhi Chairman of Mectalent and Kay G. Balster, responsible Manager at High-Tech Gründerfonds.
The positive experiences in working with business angels and the valuable experience they have brought to the team has led Synoste to decide to keep the A-round open for further investments until September 30th, the edge of the next big value step.
For more information, please contact Harri Hallila (firstname.lastname@example.org).
Finnvera Venture Capital is the leading early stage VC investor in Finland. Finnvera provides financing for the start, growth and internationalisation of enterprises and guarantees against risks arising from exports. Finnvera is a specialised financing company owned by the State of Finland and it is the official Export Credit Agency (ECA) of Finland.
Please find out more at https://www.finnvera.fi/eng/Venture-Capital-Investments
Venture Capital P.O.
FI-00101 Helsinki, Finland
Tel. +358 29 460 2747
Fax +358 29 460 2776
Mobile +358 40 821 2897
About Lifeline Ventures
We are a team of serial entrepreneurs that invest in sectors we know by heart from our years as founders and start-up leaders. Due to our background, we often start working with a start-up even before it has launched its first product, typically taking it from the inception to successful Series A investment and beyond. Our goal is to be the first person the entrepreneur reaches out to in eventual times of trouble and joy.
Mectalent is a top expert in component manufacturing and precision mechanics. Their main focus is on new technology and medical technology. Mectalents strengths are also in precision, security and monitoring mechanics, method development, component manufacturing, and surgical instruments and implants.
About High-Tech Gründerfonds
High-Tech Gruenderfonds invests in young, high potential high-tech start-ups. The seed financing provided is designed to enable start-ups to take an idea through prototyping and to market launch. Typically, High-Tech Gruenderfonds invests EUR 500,000 in the seed stage, with the potential for up to a total of EUR 2 million per portfolio company in follow-on financing rounds. Investors in this public/private partnership include the Federal Ministry of Economics and Technology, the KfW Banking Group, as well as strategic corporate investors including ALTANA, BASF, Bayer, B. Braun, Robert Bosch, CEWE Color, Daimler, Deutsche Post DHL, Deutsche Telekom, Evonik, Lanxess, media + more venture Beteiligungs GmbH & Co. KG, METRO, Qiagen, RWE Innogy, SAP, Tengelmann and Carl Zeiss. High-Tech Gruenderfonds has about EUR 576 million under management in two funds (EUR 272 million HTGF I, EUR 304 million HTGF II).
High-Tech Gründerfonds Management GmbH
53113 Bonn, Germany
Phone: +49 (228) 823 001-45
Fax: +49 (228) 823 000-50