By: BrainQ team
Jerusalem, Israel – August 16, 2021 – Israeli stroke therapy technology startup, BrainQ, today announced the closure of a $40 million funding round led by Hanaco Ventures, along with Dexcel Pharma, and Peregrine Ventures. The round brings the total funding raised by the company to over $50 million, adding to support already secured from existing investors OurCrowd, Norma, Sailing Capital, IT Farm, Millhouse, and Qure.
The funding will be used to support the company’s upcoming multicenter pivotal trial for ischemic stroke survivors for its ground-breaking technology in select hospitals across the United States as well as to continue building its infrastructure toward a go to market plan. Earlier this year, BrainQ announced it had received FDA Breakthrough Device Designation for its investigational stroke therapy, which provides the company with the opportunity to work closely with the FDA to expedite development plans and premarket clearance as well as access to the new Medicare Coverage of Innovative Technology (MCIT) pathway.
BrainQ Co-Founder and CEO Yotam Drechsler thanked the company’s new investors for their support and said, “There have been great advancements in developing ways for increasing the survival rate following stroke, but stroke has remained the leading cause of long-term disability, which poses a significant societal challenge. With the new funding and strong research partners, we are entering our pivotal study with the goal of significantly increasing the window of opportunity for reducing disability following stroke and enhancing the recovery potential – something that can impact the lives of so many.”
Stroke is one of the leading causes of disability, affecting 800,000 people every year in the United States alone. In the days and weeks following stroke, the brain attempts to repair damaged neural pathways and develop new ones to restore function, but often with limited success. This results in chronic disability for about 50-70% of survivors.
BrainQ’s investigational cloud-based technology aims to reduce disability and promote neurorecovery for stroke victims. Using a Brain Computer Interface-based approach, the company’s frequency-tuned low intensity electromagnetic field therapy is designed to operate based on biological insights retrieved from brainwaves using explanatory machine learning tools. These insights are aimed at imitating the natural processes of neural network synchronization and promoting recovery processes. The system is designed to allow for scalable and decentralized care via a portable, non-invasive wearable device that is cloud-connected with integrated telemedicine tools that enable remotely monitored sessions through an app.
Along with the funding, BrainQ has announced the addition of a new board member, US based Stacey Pugh, Chief Commercial Officer of Butterfly Network. Until recently Stacey was the SVP and President of Medtronic’s Neurovascular business. During her decade in the stroke space, she led efforts to bring clinical evidence and products, including thrombectomy devices, one of the greatest advancements in stroke care, to markets around the world. Stacey’s addition to the board will further enhance both clinical and stroke market expertise.
New board member, Stacey Pugh commented, “While I’ve had the privilege to be closely involved in some of the largest efforts for influencing stroke care, when it comes to long term recovery there is still much that can be done to restore patients’ health and abilities. I have been watching BrainQ’s development of their technology and clinical data for a while, and I believe that their therapies have the potential to make a real difference for stroke sufferers and their families. I look forward to working with the team closely and helping to steer their path to market.”
Pasha Romanovski, Co-Founding Partner of lead investor Hanaco Ventures, added: “Stroke is a leading cause of adult disability in the US, affecting 800,000 people every year. BrainQ is on the path toward developing therapies that target these disabilities caused by damaged neural networks to facilitate neurorecovery. We firmly believe in the company's innovative technology and talented team, and are happy to support them on their amazing venture."
BrainQ is pioneering a novel therapy for reducing disability and enhancing the recovery potential for stroke victims at home. The investigational BQ System is designed for portable and patient-centric treatment to reduce disability for stroke victims and other neurodisorder patients. The company is conducting clinical trials in top medical centers worldwide and has secured patents in all major global markets. BrainQ's team and advisory board include a unique, multidisciplinary group with a vast background in neurology, neuroscience, data science and machine learning.
The BrainQ technology is limited to investigational use only and is not approved or available for sale in the United States. BrainQ makes no guarantees regarding clinical trial outcomes or regulatory approval for its technology, and does not undertake any obligation to update or revise any statements herein to reflect any change in circumstances or in BrainQ’s expectations.
About Hanaco Ventures
Hanaco Ventures is a New York and Tel Aviv-based venture capital fund that invests in emerging and late-stage start-ups from the global tech ecosystem. Hanaco partners with founders around the world, helping them become category leaders beloved by their customers. Our focus areas include Agtech, Agrifood, Foodtech and Digital Health, and software companies in the SaaS, Cyber and Fintech industries.
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