CrossLiner Inc. secured a $2 million venture capital investment in the third quarter that will help the company move closer to the marketplace with a new cardiac catheterization device.
The Kalamazoo-based medical device startup expects to seek federal regulatory approval in the first quarter of 2022 for a guide extension that helps move catheter tubes through an artery during a procedure to deliver coronary stents in patients with blocked arteries. Co-founder Dr. Tim Fischell expects to proceed with a limited launch of the CrossLiner device in the U.S. in the second quarter.
CrossLiner matched the investment with a recent $1.8 million federal Small Business Innovation and Research grant to complete a filing for approval from the U.S. Food and Drug Administration. The company also will use the funding to prepare to commercialize the first generation of the device and get ready for a filing for the next-generation version, Fischell said.
“We now have enough funding between the grant and the fundraising,” he said.
Fischell, who serves as director of cardiovascular research at Ascension Borgess Heart Institute in Kalamazoo, invented the device with partner Frank Saltiel, the chief of cardiology and chair of the Heart Institute. Brooklyn Park, Minn.-based contract manufacturer Biomerics LLC produces the medical device for CrossLiner.
CrossLiner has generated “substantial interest” from medical device companies about acquiring the technology and would sell to the right buyer, Fischell said, adding that the founders have passed on prior offers “because they were not adequate.”
“If we get a reasonable offer, we’ll probably be acquired,” he said.
The CrossLiner investment was one of 32 venture capital deals in Michigan in the third quarter that collectively totaled $656.5 million, according to a quarterly report from Pitchbook and the National Venture Capital Association. The amount was largely driven by a $350 million investment in Detroit-based Fanatics Trading Cards that closed on Sept. 30.
Other third quarter West Michigan deals listed in report included:
MaxOne LLC, which raised $6 million in a later stage Series A round that closed on Sept. 28. The Grand Rapids-based company has developed an app for coaches, trainers and organizations that is used to create customized athlete training and conditioning videos.
HAPPE Spine LLC, which raised $3 million. The Grand Rapids-based startup is developing and commercializing a porous, bioactive material for orthopedic implants.
Common Citizen, a Marshall-based cannabis company that raised $20 million via a later-stage investment that closed on Aug. 25. The company declined comment to MiBiz on the deal.
Through the first nine months of 2021, venture capital investments in Michigan totaled $1.1 billion through 108 deals, according to data from Pitchbook and the NVCA. That compares to $422.2 million invested in 124 deals in the state through the first three quarters of 2020.