iPhoneECG-maker AliveCor raises $10.5 million

By: Brian Dolan | Jun 11, 2012        

Tags: | | | | | | | | | | | | |  |

AliveCor's iPhone ECGSan Francisco-based AliveCor, which has developed the iPhoneECG and iCard ECG, electrocardiogram peripheral devices for smartphones, has raised $10.5 million in its second round of funding. New investor Khosla Ventures led the latest round of funding along with return backer Burrill & Company. Existing investors Qualcomm Life Fund and Oklahoma Life Sciences Fund also contributed. AliveCor, which was formerly based in Oklahoma City, now has $13.5 million in total funding.

AliveCor plans to use the new funding to commercialize its mobile ECG devices, which are still pending 510(k) clearance from the FDA. The device will be used in both the human and animal health markets, according to the company, which has tested the device with veterinarians in the past. The money will also help it to expand its commercialization efforts to international markets. The device will initially work with iPhones and soon after Android devices. (While AliveCor has referred to its devices as “iPhoneECG” and “iCard ECG” in the past, a company spokesperson told MobiHealthNews in an email that it no longer uses these names since its devices are not FDA cleared.)

AliveCor describes its device as “a clinical-quality, low-cost mobile ECG device” that can help patients monitor their heart health anywhere and at any time. The device is also intended for use by physicians who can use it as “an additional heart health assessment tool”. Cardiologist Dr. Eric Topol from Scripps Health has been testing the device for more than a year now — he’s already used it on an airplane to help diagnose a patient who had a heart episode. (Watch Topol’s initial video review here.)

AliveCor Co-founder Dr. David Albert has made clear to MobiHealthNews in the past that iPhoneECG has its limits: “This is not a device for diagnosing acute MI (myocardial infarction),” he said. “It is not a device for detecting long QT. Both of those require a 12 lead electrocardiogram. This is a single lead rhythm script device. It is clinical quality — ours is not a sub-quality, sub-standard ECG — it’s just a single lead.”

AliveCor’s mobile ECG devices have been used in clinical studies at the University of Oklahoma Health Sciences Center and the USC Center for Body Computing. According to VentureWire, the company is currently preparing to send its human-trials results to the FDA now for its 510(k) application process.

AliveCor was co-founded by Dr. David Albert, Last week AliveCor announced its first CEO and President, Judy Wade. Wade was previously the president and CEO of Hands-On Entertainment, a developer of mobile and social apps. Prior to Hands-On, Wade was the vice president of strategy and emerging business at Linden Lab and an entrepreneur-in-residence at Kapor Enterprises Inc., the investment company of Mitch Kapor, a co-founder of Lotus and the Electronic Frontier Foundation.

“This funding provides us with the resources to support the global launch of our highly anticipated iOS and Android ECG devices, and to utilize our transformative technology and data to strategically build future devices and services,” Wade said in a written statement. “This round of financing, along with the support and expertise of the Board, will allow us to further realize our vision of providing mobile devices to identify, prevent and manage life-altering diseases.”

More on the funding in the press release below:

PRESS RELEASE: SAN FRANCISCO — AliveCor, the developer of a breakthrough mobile electrocardiogram (ECG) device, announced today that it raised $10.5 million in Series B venture financing. The financing comes on the heels of recent presentations at major cardiology conferences, in which supporting data demonstrated the clinical utility and accuracy of AliveCor’s device in monitoring patients’ heart health.

“This round of financing, along with the support and expertise of the Board, will allow us to further realize our vision of providing mobile devices to identify, prevent and manage life-altering diseases.”

Existing investor Burrill & Company and new investor, Khosla Ventures, led the financing along with participation from Series A investors, Qualcomm Incorporated, through its Qualcomm Ventures investment arm and Qualcomm Life Fund, and the Oklahoma Life Sciences Fund. AliveCor will use the funding to launch and commercialize its mobile ECG device, pending 510(k) marketing clearance by the Food and Drug Administration, in the human health and animal health markets. The funding also enables expansion for new mHealth applications and services for international markets. In addition, the company announced that Michael Kourey, an operating partner at Khosla Ventures and former Polycom CFO and Board member, would immediately join AliveCor’s Board of Directors.

“This funding provides us with the resources to support the global launch of our highly anticipated iOS and Android ECG devices, and to utilize our transformative technology and data to strategically build future devices and services,” commented Judy Wade, AliveCor’s President, CEO and Director. “This round of financing, along with the support and expertise of the Board, will allow us to further realize our vision of providing mobile devices to identify, prevent and manage life-altering diseases.”

“AliveCor’s unique innovation offers the ability to decrease the cost and increase the global availability of advanced cardiac monitoring,” said G. Steven Burrill, CEO of Burrill & Company, which has made a strong commitment to funding breakthrough digital and wireless health technologies that fundamentally improve healthcare access and quality. “Heart health remains a huge cost to the healthcare system. Burrill & Company is pleased to be a part of this round and AliveCor’s exciting next stage of development.”

AliveCor Series B Financing

Michael Kourey of Khosla Ventures added, “Investing in, and helping build AliveCor during a time when the rapid rise of smartphones, tablets and social media networks has changed the way we engage in personal health and wellness is timely and exciting. The opportunity for this novel technology to improve public awareness, increase screenings, and manage heart health is large and growing rapidly. We are delighted to lead this financing round.”

About AliveCor

AliveCor aims to provide medical professionals, patients, and consumers worldwide with mobile-powered devices, data, and analysis to identify, prevent, and manage life-altering diseases from anywhere in the world. As a first offering, AliveCor has developed a clinical-quality, low-cost mobile ECG device, which enables patients to monitor their heart health anywhere, at any time, and provides physicians with an additional heart health assessment tool. AliveCor’s mobile ECG device is designed to work in conjunction with a variety of mobile platforms, including iPhone, iPad, and Android devices.

With the current Series B financing, the total raised to date is $13.5 million. The company’s mobile ECG device has been used in clinical studies at the University of Oklahoma Health Sciences Center and the USC Center for Body Computing. AliveCor is seeking US 510(k) marketing clearance of its mobile ECG device for the iPhone. For more information, please visit www.alivecor.com or e-mail info@alivecor.com.

About Burrill & Company

Founded in 1994, Burrill & Company is a diversified global financial services firm focused on the life sciences industry. With $1.5 billion in assets under management, the firm’s businesses include venture capital/private equity, merchant banking, and media. By leveraging the scientific and business networks of its team, Burrill & Company has established unrivaled access and visibility in the life sciences industry. This unique combination of resources and capabilities enables the company to provide life sciences companies with capital, transactional support, management expertise, insight, market intelligence, and analysis through its investments, conferences, and publications. Headquartered in San Francisco, the company oversees a global network of offices throughout the United States, Latin America, Europe, and Asia. For more information visit: www.burrillandco.com.

About Kholsa Ventures

Khosla Ventures offers venture assistance, strategic advice and capital to entrepreneurs. The firm helps entrepreneurs extend the potential of their ideas in breakthrough technologies in mobile, internet, computing, health, clean energy, food, agriculture and silicon technology areas. Vinod Khosla founded the firm in 2004 and was formerly a General Partner at Kleiner Perkins and founder of Sun Microsystems. Khosla Ventures is based in Menlo Park, Calif. More information is available at www.khoslaventures.com.

About Qualcomm Ventures

Qualcomm Ventures, the venture investment group of Qualcomm Incorporated, was launched in the United States in November 2000 with an initial US $500 million allocation. Qualcomm Ventures’ aim is to support Qualcomm’s mission of enabling and fostering 3G and wireless Internet markets through investments in privately owned startup ventures. These investments include companies focusing on wireless communication technologies and products serving consumer, enterprise and vertical markets worldwide. The US $100 million Qualcomm Life Fund is part of the existing allocation for Qualcomm Ventures, specifically focused on wireless health business initiatives that will help accelerate 2net™ Platform adoption and the adoption of other wireless health initiatives. For more information, please visit www.qualcomm.com/ventures and www.qualcommlife.com/qualcomm-life-fund.

About Oklahoma Life Science Fund

The Oklahoma Life Science Fund, with US $15 million under management, is focused on supporting the creation and capitalization of life science opportunities within the state. OLSF is a cornerstone of venture capital activity within Oklahoma. For more information, please visit www.olsfventures.com

AliveCor, the AliveCor logo, and all other AliveCor product names and slogans are trademarks or registered trademarks of AliveUSA, Inc. dba AliveCor in the United States and/or other countries. All other company names and marks mentioned in this release are trademarks of their respective owners.