Sotera Wireless today announced they have completed a $12.2M Series D financing led by Singapore-based global fund EDBI. This builds on their success in prior rounds where they have raised $11M and $20M. This round included new investor Cerner Capital as well as existing investors Sanderling Ventures, Qualcomm Ventures, Intel Capital and West Health Investment Fund.
Last week following the mHealth Summit, I highlighted Sotera Wireless CEO Tom Watlington’s comments during a mHealth Summit Super Session on disruptive technology. During the discussion, Watlington made the compelling argument that large companies stand in the way of disruptive innovation in healthcare because adoption of truly innovative products and services would significantly undermine their bottom line. Sitting next to Watlington on the stage were executives of Medtronic, Phillips Healthcare and SAP, three of the largest technology companies in the world, all of whom were rendered utterly speechless. It became clear they felt vulnerable to the disruptive startups like Sotera who are on the brink shaking up the digital health ecosystem. And clearly investors agree.
[Check out our interview with Sotera Wireless CEO Tom Watlington]
Paul Gorup, chief innovation officer and co-founder of Cerner, explained his motivation for the investment in a press release,
“I met Sotera Wireless leadership about a year ago and I was amazed by the truly revolutionary capabilities that they have built into their product, ViSi Mobile…We at Cerner believe in the power of innovation and decided to collaborate with Sotera Wireless to jointly make an impact on how vital signs for general care patients in hospitals are captured and documented.”
Chu Swee-Yeok, chief executive officer of EDBI, added,
“Health systems worldwide are facing the challenge of an increasingly high-risk and frail patient population. We believe Sotera offers a disruptive platform that will provide clinicians with the visibility they need for pre-emptive and preventive care. EDBI looks forward to actively assisting Sotera to tap into new business opportunities in the Asia-Pacific market to expand its global footprint.”
The ViSi Mobile(tm) system was designed to benefit patient safety by detecting early signs of deterioration through constant monitoring of all vital signs. Patient safety is among the chief concerns of hospital clinicians and administrators faced with balancing quality, decreasing budgets and staffing resources.
Sotera submitted its first 510(k) application for US marketing clearance of the ViSi Mobile system to the US Food and Drug Administration in August 2011, and is currently under review pending approval. The funding from the Series D financing will support the launch and commercialization of the product after regulatory clearance.