Orthodontics are typically a years-long commitment to an unsightly and unpleasant process. OrthoAccel Technologies hopes that its device will help to make that process a lot shorter and less painful for a lot of people. The Houston, TX-based startup has raised a $12 million Series C financing to back its FDA-cleared device that's intended to cut the time for orthodontic treatment by up to 50% and to relieve patient discomfort.
 |
| OrthoAccel's AcceleDent |
The hands-free device, known as AcceleDent, is inserted into the mouth for 20 minutes daily in addition to orthodontics. It's designed to accelerate the movement of the teeth and bone at a cellular level as guided by tiny vibrations, or micropulses.
"The AcceleDent technology represents a significant advancement in orthodontic treatment technology for patients and positively impacts orthodontic practices at the same time, creating a large global market opportunity for the company, said Tom Schnettler, Piper Jaffray vice chairman and managing director of merchant banking, in a statement.
The private equity arm of the investment bank joined as a new investor in this financing, which also drew participation from existing investors S3 Ventures and HealthpointCapital.
AcceleDent was first cleared by the FDA in 2009 and is already widely in use. It's available at more than 3,000 orthodontic practices in North America and another almost 800 internationally. The company said it had an 80% increase in sales in 2015 fueled by accelerated adoption of the device.
AcceleDent is the most commonly used accelerative treatment used by orthodontists, according to a study in the Journal of Clinical Orthodontics. Length of treatment and discomfort are two of the most common barriers to orthodontic treatment.
Over 2016 and 2017, the company expects to use the financing to expand its global market share. It also expects to add 18 sales reps, with 9 dedicated to Europe. OrthoAccel expects to also bring in another 30 employees to support other corporate functions including marketing, innovation, operations and clinical education.
"We are proud to have esteemed and knowledgeable investment partners who believe in OrthoAccel's vision to revolutionize the orthodontic industry through innovation that enhances the patient experience," said OrthoAccel President and CEO Michael Lowe. "Continuing to build on another year of dynamic sales growth and market penetration, this investment provides the resources needed to realize our next stage of market share growth."
- here is the release