LifeImage Inc. raised $5.2 million of a planned $10 million Series B round.
The Newton, Mass.-based medical image e-sharing firm plans to use the financing to expand its sales and marketing endeavors, in addition to engineering and product development, CFO John Reichenbach told MassDevice. The financing proceeds will also cover the company’s negative cash flow, he said.
New investor Cardinal Partners of Princeton, N.J., led the round. Major investors from LifeImage’s previous round, including Long River Ventures, Massachusetts Technology Development Corporation and Partners Innovation Fund, were also involved. EMC Corp. (NYSE:EMC), which is interested in LifeImage because of the massive amount of image data that the company will potentially be storing, is also a strategic investor, Reichenbach said.
The firm has raised about $12 million since CEO Hamid Tabatabaie and senior vice president Amy Vreeland founded the company in 2008, including a $2.2 million round in March 2009 and another $2.2. million round in January 2010, plus angel funding raised in conjunction with the venture raises, Reichenbach said.
In July, the growing company added three individuals to new leadership positions. Reichenbach said the company expects to begin making a profit in approximately one year.