OnLume Surgical Gains $7 Million to Assist in Commercial Launch of Its Surgery Imaging System

By McKenzie Carpenter | Friday, 30 April 2021 | Startup, Tech, Health & Wellness

Competing alongside GIF and PNG graphics, JSON-based Lottie animations are proving to be a successful creation for the startup, LottieFiles. When the company was founded, it had the purpose of creating small files that could be accessed from any device. This new business player has made such an impact on the tech industry, the startup was able to raise $9 million.

About OnLume Surgical

Based out of Madison, Wisconsin, OnLume Surgical is a startup company that has developed an innovative fluorescence-guided surgery (FGS) imaging system. The business created this new system to potentially advance surgical precision, optimize patient outcomes, and reduce morbidity and costs.

The FGS imaging system developed by the startup company uses imaging and Food and Drug Administration (FDA) approved fluorescent indocyanine green (IDG) dye to optimize surgical workflows and visualizations of blood flow and tissue perfusion. The product is approved to be used before, during, and after vascular, gastrointestinal, organ transplant, plastic, reconstructive, and microsurgeries. Essentially, the imaging and dye helps surgeons determine more easily where there is poor blood flow that could potentially lead to post-surgical complications.

Additionally, the business has received its first 501(k) clearance from the FDA for its FGS imaging system. OnLume Surgical stated on its website that in addition to the surgeries the product is used on, the startup company hopes to eventually adopt the FGS imaging system for cancer and nerve imaging.

Commercial Launch Plans

In a press release, OnLume Surgical announced the business raised $7 million in a Series A financing round led by Cambridge Investment Group, with participation from the Wisconsin Alumni Research Foundation (WARF Ventures) and Wisconsin Investment Partners (WIP). Crunchbase data indicates this brings the total funding for the startup company to $10.7 million.

The completion of this Series A round comes several months after OnLume Surgical was awarded $2 million for a Phase II Small Business Innovation Research (SBIR) grant from the National Institutes of Health’s National Cancer Institute. The grant was awarded to further development of the FGS imaging system.

James A. Bowman, CEO of the business, said in a statement, “The completion of the Series A financing, plus the Phase II grant from NCI, provides the resources for important milestones ahead during the next 24 months...This achievement highlights the promise of OnLume’s patented technology in the field of fluorescence-guided surgery….”

Bowman added the startup company plans to use the new capital to assist in commercially launching the FGS imaging system and progress on other market opportunities, although specific details were not disclosed.

Medical Imaging

OnLume Surgical is entering an essential healthcare sector as medical imaging can detect potentially preventable conditions or provide clarity on conditions to assist in determining the course of treatment. Grand View Research reported the global medical imaging market was valued at $15.9 billion in 2020 and is projected to grow at a CAGR of 5.2% from 2021 to 2028.

While OnLume Surgical uses an imaging device to determine potential post-surgical complications, it is similar to healthcare startup Preveta, a software company that uses AI technology for early detection of serious diseases such as cancers. Startup Savant reported that Preveta raised $2 million in early April to build upon its cancer detection software.

About the Author

McKenzie Carpenter

McKenzie Carpenter is a graduate of Central Michigan University with a B.A.A. in Integrative Public Relations and French. McKenzie has previously worked for small businesses and nonprofit organizations.