Palo Alto, California – January 20, 2004 – SurgRx, Inc., developer of the nanotechnology-based EnSeal System™ for rapid vessel fusion, announced it has closed a $5 million Series B funding. According to CEO Csaba Truckai, the firm expected to close an additional $5 million Series C funding in about two months.  

Leading the round was California Technology Ventures, LLC, a new investor and also SurgRx’s first institutional investor. Prior individual investors and a new corporate investor, Kobayashi, also participated in the round. California Technology Ventures managing director Gary S. Lazar, M.D., joined the eight-member board of directors.

  Individual investors contributed to a $1.3 million Series A and, with this Series B, SurgRx has raised a total of $6.3 million to date. The latest infusion of funds is expected to support the firm for about five months. The firm hopes to close the $5 million Series C in about two months, a round that will include two new venture capital investors.  

With European back orders worth $3 million for the first quarter, SurgRx plans to begin shipments in about two weeks. It will use the funds from Series B for sales, marketing, and new product development. Currently, the firm has 18 employees and plans to add another 25 to 30 this quarter.   The SurgRx™ EnSeal™ System incorporates Smart Electrode Technology™ and a high compression jaw design to provide secure, rapid vessel fusion with virtually no unwanted thermal effects. Nanoparticles on the end of a proprietary electrode independently deliver electricity to the affected tissue. Sensing the characteristics of every tissue type, the nanoparticles adjust the amount of current and heat passing to the tissue. SurgRx can seal vessels as large as 7 mm in diameter.
 
Applications for the instrument include general surgery as well as gynecologic, neurologic, and transplant procedures. SurgRx has received FDA approval for 27 products and will target hospitals as customers.

For more information, visit the SurgRx website.

8/19/2004