TEL-AVIV, Israel, December 3, 2012 /PRNewswire/ --
Pitango completes first life sciences investment from its new fund; Dr. David Israeli, Partner at Pitango, joins the Board of Directors
Magenta Medical, a medical device company, announced today that it has closed a $4 million seed investment round from Pitango Venture Capital.
Founded in October, 2012 by Prof. Ehud Schwammenthal and Mr. Yosi Tuval, Magenta Medical is developing a novel therapeutic approach to the treatment of Congestive Heart Failure (CHF).Prof. Schwammenthal, a cardiologist, and Mr. Tuval, a mechanical engineer, were also the founders of Ventor Technologies, a former Pitango portfolio company that developed an innovative catheter-based system for the minimally invasive replacement of the aortic valve. Ventor was acquired for $325 million in 2009, 5 years after its inception, by Medtronic, Inc. CHF has been described as an epidemic in the Western World, afflicting approximately 5.7 million people in the U.S. alone, with 670,000 new cases diagnosed annually. (AHA, 2012 - http://circ.ahajournals.org/content/125/1/e2). The economic burden of CHF is large and rapidly growing, with an estimated annual cost to the US economy of over $34 billion in 2010. This amount is expected to reach a staggering $57 billion by 2020. (AHA, 2012 http://circ.ahajournals.org/content/early/2011/01/24/CIR.0b013e31820a55f5.abstract) Prof. Ehud Schwammenthal, Magenta's Co-founder and CEO: "Magenta was founded on the premise that CHF can be managed using a device that does not underestimate the complexity and the inter-patient variability of the disease. We have been enjoying a fruitful relationship with Pitango for many years, as is now reflected by their early support of Magenta. Dr. Israeli brings relevant experience and expertise to the table, and we look forward to his joining our Board of Directors." Dr. David Israeli, Partner at Pitango: "We are pleased to be making our first life sciences investment from Pitango VI. The firm continues to be committed to this sector, and believes in the potential of Israeli companies operating in the life sciences arena. Prof. Schwammenthal and Mr. Tuval have a proven track record as medical device entrepreneurs, and we are happy to collaborate with them once again. The magnitude of the problem they are tackling, in combination with the novelty and elegance of their approach, lead us to believe that Magenta can become a groundbreaking company in the treatment of CHF." About Pitango Venture Capital ( http://www.pitango.com ) Pitango Venture Capital, the leading venture capital firm in Israel, has been investing in technology entrepreneurs since 1993. With offices in Israel and Silicon Valley, California, Pitango currently manages several venture funds totaling over $1.5 Billion in committed capital invested in more than 150 companies to date, among them companies that have gone public or have been acquired such as Anobit, acquired by Apple (NASDAQ: AAPL); superDimension, acquired by Covidien; Aeroscout, acquired by Stanley Healthcare Solutions; Provigent and Dune Networks, both acquired by Broadcom (NASDAQ: BRCM); Convergin (acquired by Oracle (NASDAQ:ORCL); Optonol, acquired by Alcon (NYSE:ACL); Ventor, acquired by Medtronic (NYSE: MDT). Pitango invests in high-growth companies in various stages, from seed and early stages to growth and late-stage, and supports them as they grow. Pitango's investment focus includes: Communications; Networking & Storage; Wireless, Cellular and Mobile technologies; Enterprise Software, Internet and Media; Healthcare & Life Sciences, and Clean Technologies.
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