Averto Medical today announced the closing of an oversubscribed $30.5 million Series A financing to support its ColoSeal system.
Cormorant Asset Management led the financing round for the San Francisco-based device maker. Venrock Healthcare Capital Partners, LifeSci Venture Partners, CVF and other investors also participated.
Averto plans to use funds to support the clinical testing of its investigational ColoSeal intraluminal diversion system. The technology could help patients undergoing colorectal surgeries avoid the need to create an invasive temporary diverting ostomy.
In connection with the financing, Dr. Ken Song joined Averto as executive chair. Dan Puckett and Bihua Chen joined the company’s board of directors as well.
Song, a physician-scientist and serial entrepreneur, has successfully led a number of companies in the life sciences space. His leadership resulted in several launched products and more than $5 billion in realized value via acquisitions, according to a news release.
Puckett most recently served as CFO at Shockwave Medical, leading it through its IPO in 2019. Chen serves as portfolio manager for Cormorant Asset Management.
“I am thrilled to welcome this esteemed group of investors as well as Ken, Dan and Bihua to our board. We are committed to substantially improve the clinical care and outcome for patients undergoing colorectal surgeries,” said Dr. Kenton Fong, founder and CEO of Averto Medical.
