The new financing comes several months after Insightec announced layoffs and a going concern qualification was attached to its financial results. Israeli medical device company Insightec has raised $150 million in an oversubscribed financing round. The ultrasound developer, which was founded in 1999, had previously raised $700 million.
The new financing comes several months after Insightec announced layoffs and a going concern qualification was attached to its financial results. The round was led by Fidelity Management & Research Company and co-led by Nexus Neurotech Ventures and Ally Bridge Group with support from new investors, Baillie Gifford, Catalio Capital Management, Fayez Sarofim & Co., and Gilmartin Capital, along with existing investors led by affiliates of York Global Finance / Community Fund and Perceptive Advisors.
The Koch family, the biggest investor in the previous two financing rounds, and the controlling shareholders with a 40% stake, did not participate. The new financing round will enable the company to avoid a going concern qualification in its second quarter results. The financing round in 2020, which was led by the Koch family, was completed at a company valuation of $1.
3 billion. Since then Israeli institutional investors including Bank Leumi, More Investment and the Peregrine venture capital fund invested in Insightec at a company valuation of $1 billion. Around the same time, during the tech boom, Insightec was in talks for a SPAC merger at a company.