HOLLAND — Cultivate(MD) Capital Fund II LP, a venture capital fund operated by Grand Rapids-based Genesis Innovation Group, invested in Embody Inc., a Norfolk, Va. company that developed a collagen-based micro-fiber implant for Achilles’ heel and rotator cuff repairs.
Embody’s Tapestry implant, which grows new tissue over surgical repairs, has a combined market of 750,000 surgical cases annually. Pending studies will seek to prove the implant minimizes scarring and accelerates post-op rehabilitation.
“Embody technology is built on an incredible body of research and development which utilizes powerful manufacturing technology to produce soft tissue augmentation products that provide optimal characteristics for growth of tissue,” said Genesis Innovation CEO Rob Ball, who joined the Embody board of directors. “They’ve developed a truly unique platform that will deliver product innovation for years to come.”
Cultivate(MD), which targets early-stage health care companies with a focus on medical devices, particularly orthopedics, led Embody’s $3.6 million capital raise. The funding will go to support pre-launch and pre-commercial activities.
Embody previously received $12.1 million in funding and an R&D contract from the Defense Advanced Research Projects Agency, which funded product development.
“Genesis Innovation Group is an attractive group for Embody, particularly with their team’s experience in orthopedics and their ability to understand challenges and to provide valuable input regarding product development, regulatory and IP strategies,” Embody CEO Jeff Conroy said. “With Genesis, we have not only found a lead investor but a strategic partner who will help us move forward.”
Another Genesis Innovation portfolio company recently closed on a $2.45 million capital raise.
Magnesium Development Co. LLC will use the capital raised from existing investors for a study that launches later this year on new orthopedic screws the company developed. The screw uses an alloy material licensed from Livonia-based Nano Mag LLC.
“We expect to follow patients for numerous years, though there will be interim follow-up points where we’ll analyze and report on data,” Ball wrote in an email to MiBiz.
Using elements found in daily multi-vitamins, Magnesium Development’s material is designed to gradually dissolve and absorb into the body.