Bomedus GmbH announced that it has received €2.5 million in its series B round of equity funding on November 24, 2015. The round included participation from new investors, NRW.Bank, Investment Arm, Christoph Schug, and existing investors, High-Tech Gründerfonds Management GmbH, and the Pre-Seed Fund, Andreas Hoeft, and Bonn.
Bomedus GmbH is based in Bonn, Germany.
In realizing the next step of its growth strategy, Bonn-based start-up Bomedus has strengthened its equity position, obtaining more than 2.5 million Euros through two new investors: NRW.Bank, the state development bank of North Rhine-Westphalia, and private investor Dr. Christoph Schug, financial expert and serving on the supervisory board of several companies. The funding will be mainly used to extend the product portfolio and to foster commercialization internationally. The new capital will be mainly used to launch further medical products to treat chronic pain and to foster further clinical trials. Other shareholders of the company are the High-Tech Gründerfonds (HTGF), the Pre-Seed Fund (PSF) and Prof. Dr. Andreas Hoeft, Bonn.
“The team of Bomedus impressed us with its exciting technology platform, which suites the treatment of various types of pain and addresses large market opportunities”, Dr. Thomas Raueiser, Senior Investment Manager at NRW.Bank. Additionally, also Dr. Christoph Schug is extremely satisfied with the closing of the investment. “There is a huge potential for growth in the healthcare sector especially in the industrialized nations. Due to the impact of the ongoing demographic changes as well as the increasing health awareness of individuals, the need for alternative chronic pain treatments will continue to grow in the foreseeable future”.
“We are very delighted to have successfully won the NRW.Bank and Dr. Schug as strong and competent partners, who in line with our existing shareholders know the healthcare market very well and focus on growth. The strengthening of equity, the comprehensive expertise as well as a professional team makes us well prepared for the near future”, says Dr. Johannes Weigl, founder and CEO of Bomedus.
Innovation in the Treatment of Chronic Pain
Bomedus GmbH is an innovative health-care company that develops medical devices that decrease effectively chronical pain of patients. The whole product portfolio is based on the mechanism of an electro-therapeutic method, the so-called Small Fiber Matrix Stimulation (SFMS). The new technology enables patients for the first time to achieve a modulation of the pathologically altered neuronal impulses non-invasively, which has emerged trough the course of chronic pain. This is a prerequisite for sustainable pain relief or even pain elimination. So far no competing technologies exist that are able to obtain a significant pain relief non-invasively.
High Market Potential
More than 6 million people in Germany suffer from life debilitating chronic pain. The economic costs of this disease are considerably high, total disability and early retirement are the main consequences. It is expected that the annual expenses of the German healthcare system amount to approximately 6 to 8% of total expenditures. The existing medical treatment options are limited, due to severe side effects of pharmacological therapeutics.
The medical products of the Bomedus GmbH can close this gap, reducing significantly the chronic pain of patients and decreasing direct and indirect medical expenses of health insurance companies. The new technology of Small Fiber Matrix Stimulation is integrated into a textile band, which can easily be applied by the patient at home.
About Bomedus GmbH
The Bomedus GmbH is a spin-off of the University Clinic of Bonn. Johannes Weigl founded Bomedus GmbH to treat chronic pain with a holistic approach, while Tobias Weigl used the possibilities of the Bonn located Life Science Incubator (LSI) to continue exploring the mechanism of the Small Fiber Matrix Stimulation. At the LSI laboratories, Dr. Weigl researched the scientific applications of neuromodulation, which has been tested positive in clinical studies. “Bomedus has mainly emerged through the spin-off at the LSI in Bonn, proving that the common approach of the Federal Ministry of Education and Research, the Ministry of Innovation, Science and Research in NRW and other private investors to commercialize scientific projects is successful”, says Dr. Jörg Fregien, CEO of the LSI Pre-Seed Fonds GmbH.
NRW.BANK Corporate Finance, the investment arm of the state development bank of Northrhine-Westphalia, is an investment unit specialized in direct- and fund investments into small and medium enterprises. The unit prefers to invest in seed, start-up, early, mid and later stage ventures, buy-outs and spin-offs. It seeks to provide private equity and venture capital financing to enterprises that focus on established industry sectors and companies active in IT, software and media technologies as well as in life sciences and cleantech. NRW.BANK Corporate Finance is based in Düsseldorf, Germany.
About High-Tech Gruenderfonds
High-Tech Gruenderfonds invests in young, high potential high-tech start-ups. The seed financing provided is designed to enable start-ups to take an idea through prototyping and to market launch. Typically, High-Tech Gruenderfonds invests EUR 500,000 in the seed stage, with the potential for up to a total of EUR 2 million per portfolio company in follow-on financing. Investors in this public/private partnership include the Federal Ministry of Economics and Technology, the KfW Banking Group, as well as strategic corporate investors including ALTANA, BASF, Bayer, B. Braun, Robert Bosch, CEWE Color, Daimler, Deutsche Post DHL, Deutsche Telekom, Evonik, Lanxess, media + more venture Beteiligungs GmbH & Co. KG, METRO, Qiagen, RWE Innogy, SAP, Tengelmann and Carl Zeiss. High-Tech Gruenderfonds has about EUR 576 million under management in two funds (EUR 272 million HTGF I, EUR 304 million HTGF II).