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Insightec Secures $150 Million Funding Despite Recent Workforce Reductions

Insightec raises $150M for its ultrasound-based tremor treatment, overcoming recent layoffs and financial losses
June 20, 2024

Innovative healthcare company Insightec, renowned for its ultrasound-based tremor treatment platform, has successfully raised $150 million in a recent equity financing round. This fundraising comes merely six months after the company reduced its workforce by 20%, laying off 100 employees due to mounting financial losses.

The latest funding round was spearheaded by Fidelity Management & Research Company, with significant contributions from Nexus Neurotech Ventures and Ally Bridge Group. New investors, including Baillie Gifford, Catalio Capital Management, Fayez Sarofim & Co., and Gilmartin Capital, joined the effort. Additionally, affiliates of York Global Finance/Community Fund and Perceptive Advisors participated, while the Koch family, who holds a 40% stake in the company, opted out of this round.

Insightec's platform leverages focused ultrasound, precisely guided by MRI, to offer treatment for patients suffering from medication-refractory essential tremor and Parkinson's disease. Despite its groundbreaking technology, the company faces financial challenges, reflected in its negative equity of $78 million and a $101 million loss in 2023. The first quarter of 2024 saw an additional $26 million loss, coupled with a significant 30% revenue decline.

The company's valuation for this round remains undisclosed. Notably, Insightec was in merger talks with SPAC about two years ago at a $1.9 billion valuation. However, the merger did not proceed, and its valuation subsequently dropped. In its last funding round, the company was valued at approximately $1 billion. Recent reports from Elbit Medical, which holds a 3% stake in Insightec, estimate its value at a much lower $211 million.

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