HBAN (Halo Business Angel Network) and a joint initiative of Enterprise Ireland and InterTrade Ireland, have announced that its MedTech Syndicate has led a €1.1 million Series A funding round in medical device start-up, Ostoform.
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HBAN’s MedTech Syndicate leads €1.1M investment in Ostoform
HBAN Angels contributed €280,000, with venture capital investor, SOSV, Enterprise Ireland, and other angel investors making up the rest of the funding round.
The investment will help Ostoform to employ five additional staff and fund the patient trials and regulatory approval required to commercialise and distribute its patented technology in both the US and Europe.
Ostoform was set up to address the management of a stoma – a small surgical opening on the surface of the abdomen to divert the flow of waste. A common complaint is irritation, redness and discomfort around the skin caused by leaks of the acidic content contacting the skin. Ostoform has developed the Ostoform Seal with FlowAssist. This is a seal that is secured to the skin around the stoma to effectively guide the acidic stoma output into the ostomy bag, thereby preventing it from contacting the skin.
The need for a solution to ostomy skin problems was first identified when Kevin Kelleher and Rhona Hunt took part in the BioInnovate Ireland Programme at the University of Limerick. The Enterprise Ireland-backed BioInnovate Ireland programme aims to enable medical technology innovation to meet identified clinical needs through specialist training.
Ostoform CEO, Kevin Kelleher said: “Approximately one million people per year in Europe and the US have an ileostomy or urostomy, with some finding it very difficult to adapt to stoma management post-surgery. The patented Ostoform Seal with FlowAssist aims to reduce the discomfort of dermatitis that often happens with this type of procedure.
“This investment is not just financial; the angel investors bring invaluable expertise and experience that will help us to scale. We now have business people involved who have already gone through the process of patient trials with the FDA in the US and the CE Mark certificate in Europe. That will be instrumental in helping us to avoid pitfalls along the way and ultimately succeed in getting our product to market. The angels also have valuable connections with both manufacturers and distribution channels in Europe and the US, which will help us penetrate the market and reach the patients that need our technology quickly.”
Declan Quinn, lead angel for the HBAN MedTech Syndicate, said: “The HBAN Medtech Syndicate is delighted to have led this €1.1 million investment round. Kevin is a driven and dynamic entrepreneur and there is a growing global need for the patented Ostoform devices. We expect an excellent return on our investment, with the added satisfaction of knowing we are helping millions of people worldwide who will benefit from the Ostoform devices.”
Sarah Cagney, communications & relationship manager, HBAN added: “HBAN angels invested almost €7 million in the medtech sector in 2017, with the average investment significantly higher than that of other sectors. HBAN’s MedTech Syndicate has deep domain knowledge and experience that brings real value to high potential start-ups like Ostoform. Other companies that have already received crucial early stage financing from the syndicate include Signum Surgical, AventaMed, ProVerum Medical, Kite Medical and OncoMark. All of which continue to receive ongoing support and access to the investors’ expertise long after the original investment has been made.”