CardioMetrix
Client: CardioMetrix
Sector: Medical Devices
Transaction: Series A Preferred $2.15 million
CardioMetrix is a medical device start-up developing an endovascular sensor for use in managing congestive heart failure. Because it is minimally invasive, the product's sensor is not adversely affected by endothelization. Another key strength is that the product is powered remotely, obviating the need for an internal power source. CardioMetrix engaged Broadmark to raise $2 million to $3 million in Series A Preferred equity financing. Broadmark rarely works with life science start-ups because of the high barriers to placement, but after completing due diligence, we recognized the value of the unique product and knew which investors would be most likely to appreciate the opportunity. Broadmark identified two Small Business Investment Companies seeking early-stage medical device companies, and helped secure the first $1.075-million tranche in November 2005. In June 2006, after the company successfully completed certain investor-defined technical milestones, the company closed on the second $1.075-million tranche to complete the $2.15-million offer.