Hearing device developer Eargo announced today that it closed a $71 million equity financing as it looks to expand its commercialization efforts.
New co-investors Gilde Healthcare and Longitude Capital led the investment, with existing investors New Enterprise Associates, the Charles and Helen Schwab Foundation and Nan Fung Life Sciences also participating. Gilde Healthcare’s Geoff Pardo and Juliet Tammenoms Bakker of Longitude Capital will join Eargo’s board of directors as well, according to a news release.
San Jose, Calif.-based Eargo intends to use the proceeds to expand commercialization for its virtually invisible, rechargeable, completely-in-canal, FDA-regulated exempt Class I hearing aid, along with its online hearing screening and telecare consultation and support.
“We are pleased to close on this financing round, which provides us with significant capital to fund our growth,” Eargo president & CEO Christian Gormsen said in the release. “While our business was performing well before COVID-19, the pandemic accelerated consumer demand for our hearing loss solution. More consumers who are reluctant to purchase their hearing aids through the traditional brick and mortar clinics have recognized the benefits of our solution.”