Trice Medical said it raised the 1st tranche of an $11.6 million Series B round and named medtech veteran Jeffrey O’Donnell Sr. as its new CEO.

Trice, which is developing a "micro-invasive" device called Mi-eye for outpatient diagnostic arthroscopy, said the round was led by a nearly $1.3 million contribution from Safeguard Scientifics (NYSE:SFE) that’s worth a 9.6% stake. BioStar Ventures and other prior backers also participated, according to a press release.

The 2nd tranche of the round is due when Trice wins 510(k) clearance from the FDA for the Mi-eye device, according to the release, and will see Safeguard drop another nearly $3.8 million for a roughly 26% stake in Trice. Proceeds are slated for commercialization and marketing for the device, Trice said.

"We believe that Trice has the potential to significantly disrupt the current orthopedic diagnostics paradigm," Safeguard managing director for healthcare Dr. Gary Kurtzman said in prepared remarks. "Trice is addressing all 3 major constituents within healthcare – physicians, payers and patients. They already have reimbursement codes for physicians in place; they clearly deliver cost savings for insurers; and they provide a better experience for patients."

"Mi-eye provides the injured patient with an answer to their injury during their first visit to the orthopedic surgeons office. It will shrink the time from injury to recovery and reduce cost to the healthcare system. This financing will allow Trice to begin marketing mi-eye, pending U.S. FDA clearance. This is a tremendous opportunity to lead Trice’s team, expand the company’s value proposition, and partner once again with Safeguard Scientifics. The technology and the current market create the perfect environment for the launch of this product," O’Donnell added.

Formerly known as Trice Orthopedic, the company landed a $3 million bridge loan led by BioStar late last year.