Mayo Clinic Spin-off Ambient Clinical Analytics Raising $5.4M

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Mayo Clinic technology spinoff Ambient Clinical Analytics has raised $3.9 million of a planned $5.4 million private placement stock offering, regulatory filings show.
 
The Regulation D filing with the U.S. Securities and Exchange Commission, published earlier this month, indicated the offering is part of a Series A and Series A-1 convertible preferred stock deal offered by Ambient, an early-stage company spun off from Mayo Clinic research and housed in its Rochester startup incubator, the Mayo Clinic Biobusiness Accelerator.

Its product is the AWARE patient monitoring software, which aggregates and organizes once-scattered vital patient information into a single, easy-to-read interface.
 
According to the Reg D filing, the company was still seeking to place $1.46 million of the stock offering as of Feb. 9.  
 
The company’s CEO is Allen Berning, a well-known Rochester business figure who, after spending 15 years at IBM, founded electronics manufacturer PEMSTAR in 1994, leading it through a $115 million initial public offering. From 2007 to 2012, he ran Hardcore Computer/Liquid Cool Solutions, raising $18.5 million in venture funding. Berning cofounded Ambient in 2014 with five Mayo clinicians after landing $1.1 million in seed funding from Mayo Clinic Ventures, Social + Capital Partnership and others.
 
He told the Rochester Post-Bulletin the use of the new proceeds would be announced once the placement has closed.
 
The startup’s team of Mayo clinicians—Vitaly Herasevich, Ognjen Gajic, Andy Boggust, Vern Smith and Brian Pickering—developed the AWARE system in conjunction with Dutch multinational Royal Philips after receiving a $16 million research grant from the federal Center for Medicare and Medicaid Innovation, which saw the technology as a way to reduce health care costs by making the presentation of emergency room and critical care patient data more efficient.
 
Ambient received FDA 510(k) pre-market clearance for AWARE (which stands for Ambient Warning and Response Evaluation) in 2015. Philips announced in February 2016 it was rolling out the AWARE dashboard, renamed the IntelliSpace Critical Care Console, as a key upgrade to its line of critical-care patient monitors.
 
Berning has said previously Ambient expected to generate substantial revenues in 2016 and was seeking to graduate soon from the Mayo incubator. He estimated the potential worldwide market for Ambient’s technology at “several billion dollars.”
 
The SEC filing listed Ambient’s other directors as Pickering, an assistant professor of anesthesiology at the Mayo Medical School;  Rochester businessman Greg Lea, Berning’s former CFO at Pemstar; and Robbie Greenglass, founder of Waterline Ventures of Cambridge, Massachusetts.
 
According to its website, Waterline “invests in the early stage health care technology and services companies that are improving the way care is delivered,” especially those that address “increasing costs, inconsistent quality, and inadequate access to health care.”

 

Originally reported by Twin Cities Business Magazine. Read original article