Genesis Innovation has raised cash to back medical device startups. The consultancy-cum-VC will use the fresh funding to continue bankrolling and building early-stage medical device companies.
Holland, Michigan-based Genesis pulled in $1.1 million in its latest fundraising push, bringing the total it has gathered since setting up shop in 2013 up to $2.3 million. Genesis’ track record to date shows the amount, while small by the standards of some investors, will enable it to move work forward in its chosen early-stage niche.
Xconomy picked up and fleshed out the financing news, reporting Genesis will use the money to invest in its existing portfolio and take on staff with financial and regulatory expertise. If Genesis makes new investments, it will follow the same blueprint that has served it to date.
“We’re looking for companies with demonstrated proof of a solution to a known problem,” CEO Rob Ball said. “If that’s been met, we assess if the talent associated with Genesis is the right talent to help move the company forward. After that, we consider an investment. We’re usually seeking an equity position and meaningful influence.”
Following this approach has led Genesis to build up a small portfolio of companies. In the case of Magnesium Development Company (MDC) and Shoulder Innovations, Genesis’ involvement extends well beyond just putting up cash.
Ball runs MDC with Don Running, who, like Ball, holds the same position at both Genesis and the portfolio company. Running is VP of R&D. Ball is CEO. Together, the executives are overseeing MDC’s attempt to develop orthopedic screws. Using an in-licensed alloy, MDC hopes to develop screws that are as strong as permanent metal materials and are absorbed like polymer alternatives.
Genesis also provides nonfinancial support to Shoulder Innovations, a device company working to improve the stability and durability of shoulder implants. Shoulder Innovations raised $1.5 million earlier this year to build out its commercial infrastructure.
Ball oversaw Genesis’ participation in that round. If all goes to plan, he will soon be able to make bigger bets on businesses. One of the companies listed in Genesis’ portfolio is Cultivate MD, an organization Ball wants to function more like a traditional VC shop. The aim is to raise $10 million.