CMR Surgical Ltd. today announced that it has raised £425 million ($600 million U.S.) in a Series D financing. The Cambridge, U.K.-based company claimed that it is “the largest ever medtech private funding round worldwide” and said it plans to use the funds to increase the commercialization of its Versius surgical robots and develop its digital ecosystem.
“This latest financing equips CMR with significant funds to accelerate our mission of bringing Versius to hospitals worldwide, whilst providing full flexibility to achieve our goals,” stated Per Vegard Nerseth, CEO of CMR. “This major injection of capital that now values us at $3 billion not only reflects the level of interest we have seen in our product, but also the scale of the business and will enable significant technology developments and global expansion.”
Founded in 2014, CMR said it works with surgeons, surgical teams, and hospital partners to provide a tool to improve healthcare and make minimally invasive surgery more affordable. The private limited company has launched the Versius system across Europe, Australia, India, and the Middle East, and it said it expects demand to continue to grow. It is under review by the U.S. Food and Drug Administration.
Versius features portability
Versius is designed to fit into virtually any operating room setup and integrate seamlessly into existing workflows, increasing the likelihood of robotic minimal access surgery (MAS), said CMR. The system's portable and modular design allows a surgeon to only use the number of arms needed for a given procedure.
Biomimicking the human arm, Versius gives surgeons the choice of optimized port placement along with the dexterity and accuracy of small fully-wristed instruments, said CMR. It includes 3D high-definition vision, easy-to adopt instrument control, and a choice of ergonomic working positions
The open surgeon console can reduce stress and fatigue and allows for clear communication with the surgical team, CMR added. By thinking laparoscopically and operating robotically with Versius, patients, surgeons, and healthcare professionals can all benefit from robotic MAS it said.
In addition, Versius captures data with its wider digital ecosystem to support a surgeon’s continuous learning. Through the Versius Connect app, Versius Trainer, and CMR clinical registry, the system can provide insights to ultimately improve surgical care, said CMR.
SoftBank Vision Fund 2ii leads round
SoftBank Vision Fund 2ii led CMR's Series D round, which was co-led by Ally Bridge Group. Other new international investors included RPMI Railpen, Tencent, and Chimera, broadening the geographic scope of the company's shareholder base.
“Demand for minimally invasive robotic surgery is growing rapidly among surgeons and patients, yet high costs have historically hindered adoption,” said Yanni Pipilis, managing partner for SoftBank Investment Advisers. “CMR Surgical is transforming surgical robotics to convert underpenetrated open and laparoscopic procedures in new international markets where robotic surgeries are less prevalent such as India, the Middle East, and Latin America. We look forward to working with CMR in its mission to make robotic keyhole surgery available to everyone.”
The global surgical robotics market will experience a compound annual growth rate (CAGR) of 17%, reaching $13.7 billion in 2027, predicts Market Reserach Future.
“As the lead investor, SoftBank has a wealth of experience supporting disruptive business models and innovative technologies, and we look forward to leveraging their expertise and extensive ecosystem,” said Nerseth. “I would also like to thank our existing investors for their long-term support.”
Existing investors, including LGT and its affiliate impact investing platform Lightrock, Watrium, Cambridge Innovation Capital, PFM Health Sciences, and GE Healthcare, also participated in the round. J.P. Morgan acted as sole placement agent on CMR Surgical’s Series D financing.
“As life science-dedicated specialists and active investors in surgical robotics, we believe the user-friendliness and cost-effectiveness of the Versius system allows a meaningfully differentiated robotic experience that democratizes robotic surgery both procedurally and geographically,” said Charles Chon, partner and head of MedTech at Ally Bridge Group. “We are proud to support CMR as a hallmark of U.K. innovation and a solution for all surgeons and their patients.”
CMR said the financing will enable it to fully execute strategy to rapidly accelerate its geographical expansion and support the continued development of technologies such as Versius Connect, an app for surgeons using the Versius surgical robotic system.