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NovaVision™ Acquires $20 Million in New Funding

01/09/2007

South Florida Business Journal

By Brian Bandell

January 9, 2007

NovaVision™ has raised $20 million from six investment groups in its third round of funding.

The privately held Boca Raton-based company said it will use the money to continue to expand availability of its Vision Restoration Therapy (VRT™) medical device in clinics.

The company said the Food and Drug Administration-approved, non-invasive medical device improves vision for people who are partially blind due to stroke or brain trauma.

The device is available in 45 centers, including the University of Miami's Bascom Palmer Eye Institute. There are enough potential patients to support several hundred centers offering VRT™, NovaVision™ Chief Executive Officer Navroze Mehta said.

About 2.2 million stroke and brain injury survivors in the United States have vision impairments, the company said. VRT™ has treated more than 1,000 patients and 65 percent to 70 percent had improved vision, Mehta added.

NovaVision™ is to use its funds to market VRT™ to those patients and their doctors.

Medicare is reviewing the device to decide if it will cover the treatment, which Mehta said would lead to more readily available commercial insurance coverage.

The company recently doubled its space by moving into Florida Atlantic University's Research & Development Park. The 45-employee firm expects to hire an additional 10 to 15 employees this year, Mehta said.

"With the last round of funding [in 2005], we had nine centers, so we've made very significant progress," he said. "We have reached the point where the company can grow and VRT™ can be available to more patients."

The leader for the most recent funding round was Chicago Growth Partners, of Chicago. It also included other first-time investors Johnson & Johnson Development Corp., of New Jersey, and Oakwood Medical Investors, of St. Louis.

Three firms that built on their earlier investments were Tullis-Dickerson, of Connecticut, Noro-Moseley Partners, of Atlanta, and Crossbow Ventures, of West Palm Beach.

Mehta said this round of funding would bring NovaVision™ to break-even cash flow. The company has raised $39 million since its inception in 2003.