OrSense, an Israeli privately-held medical device company, has completed an $8.2 million venture capital financing round. The financing was led by STAR Ventures and Israel Health Care Ventures. Also participating in the round were investment groups from the US, UK and Israel. In addition to this financing round, the company was also awarded a grant of $1.2 million ($2.4 million project with 50% self participation) by the Office of the Chief Scientist of the Israeli Ministry of Trade and Industry, for promising research and development activity.
OrSense's proprietary technology, known as "Occlusion Spectroscopy" is designed to non-invasively measure multiple and vital blood parameters such as glucose, hemoglobin, cholesterol and others. The innovative electro-optical technology performs non-invasive blood measurements by means of a finger probe, eliminating the need to draw blood by needle-stick. The company is developing a non-invasive glucose monitor geared for daily use by diabetics who must frequently monitor their blood glucose by means of an invasive fingerstick test. There are an estimated 140 million people in the world who suffer from diabetes, including 16 million in the US (about 7% of the population). The glucose-monitoring market is forecasted to reach $3.5 billion in 2003, with an annual growth rate of 12-15%.
OrSense CEO Abe Israel Coriat said, “We are most pleased at the successful closing of this round of financing. The significant size of the funding, with today's difficult financial market conditions , reflects the substantial commitment and support of our investors in our company. We are confident and excited by the potential of our technological breakthrough and look forward to expanded clinical trials and regulatory applications in the coming months. We aim to bring to market the first truly non-invasive sensor of its kind, targeting a market estimated at $3.5 billion per year.”
OrSense was founded in 1997 by Dr. Alex Sternberg and Dr. Ilya Fine who serves as its Chief Technology Officer, and is based in the Rabin Science Park in Rehovot, Israel.
Published by Israel's Business Arena on 14 August, 2001