Respiratory startup Vapotherm raises $30M financing to fund global expansion

A nasal cannula for the administration of Vapotherm's medical grade vapor--Courtesy of Vapotherm

Respiratory care specialist Vapotherm announced a $30 million equity financing to fund its expansion led by Portland, OR's Arnerich Massena. The first tranche of $15 million closed on Oct. 30, and the remainder is slated to close in September 2016.

The Exeter, NH, company sells a variety of respiratory devices, such as the Vapotherm Precision Flow system and associated accessories to deliver medical grade vapor to patients through a nasal cannula, as well as the Heliox device for the delivery of low density helium and oxygen. It says more 700,000 patients have been treated using its devices.

Vapotherm sells its devices globally, and markets its products in French, Italian, Spanish, Korean, Portuguese, Polish, Turkish and Japanese, according to the product website.

"We are delighted by our investors' continued support of Vapotherm. Their support helps us provide High Flow Therapy, our unique respiratory solution to improve clinical and economic outcomes for customers and the patients they serve," said Vapotherm CEO Joe Army in a statement.

The round consisted of new investor Perceptive Advisors, and existing investors Gilde Healthcare Partners, Morgenthaler Ventures, QuestMark Partners, Kaiser Permanente, Adage Capital Management, Crestline Investors and Cross Creek Capital.

"We are enthusiastic about continuing to support Vapotherm. This new capital will help the company continue the expansion of the U.S. field organization, develop new products and expand in select international markets," said Arnerich Massena CEO Tony Arnerich in a statement.

Arnerich Massena is a wealth management firm, but also runs the 3x5 Special Opportunity fund to finance later-stage healthcare and clean-tech companies, according to the Massinvestor database.

The 3x5 Special Opportunity fund led a $29 million round in 2013, one of the biggest of the year, while Gilde Healthcare Partners led a $24 million round in 2014.

- read the release

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