Exo Raises $200M to Commercialize Ultrasound Device

Exo Secures $220 Million in Series C Funding

Exo, whose name is pronounced “echo,” has successfully obtained $220 million in Series C funding. This new capital injection is designated to facilitate the commercial launch of its portable ultrasound device and the Exo Works point-of-care workflow platform.

Investment Details

RA Capital Management spearheaded the funding round, with participation from BlackRock, Sands Capital, Avidity Partners, Pura Vida Investments, and existing investors.

According to Exo CEO Sandeep Akkaraju, this latest funding brings the company’s total investment to over $320 million since its inception in 2015. This figure includes a prior $40 million investment secured in 2020.

Cost Comparison

Traditional ultrasound machines can range in price from $40,000 to $250,000 for basic models, and can exceed millions of dollars for advanced systems. In contrast, Exo’s device is anticipated to be priced similarly to a standard laptop.

The Future of Ultrasound

“We firmly believe that ultrasound represents the future of medical imaging, being a non-radiating technology with no known adverse effects,” Akkaraju stated. “Our goal is to make this technology readily accessible to physicians, and ultimately, to patients themselves.”

The ability to visualize internal structures in real-time offers immediate diagnostic insights.

Device Capabilities and Applications

Exo’s device leverages a combination of artificial intelligence, medical imaging techniques, and silicon technology. This allows for its use in diverse clinical settings, such as evaluating cardiac patients or scanning the lungs of individuals with COVID-19.

Furthermore, the device can empower patients to monitor their health at home, providing real-time data following surgery or for ongoing condition management.

Exo Works Workflow Platform

Complementing the device is Exo Works, a workflow platform designed to streamline exam review, documentation, and billing processes, completing them in under a minute.

Commercialization and Expansion Plans

The company’s immediate priority is the commercialization of the device, which will be the primary focus of the new funding. Akkaraju also plans to expand the company’s informatics platform, currently undergoing pilot programs nationwide, and to increase both production capacity and the size of its sales team.

Market Growth

The global point-of-care ultrasound market is projected to reach $3.1 billion by 2025, with an anticipated annual growth rate of 5%. Beyond physicians, Akkaraju notes increasing interest from other healthcare professionals, such as those seeking assistance with tasks like locating veins for IV placement.

FDA Approval and Market Entry

Exo intends to proceed with the market launch of its handheld ultrasound device upon receiving approval from the U.S. Food and Drug Administration.

RA Capital’s Perspective

Zach Scheiner, principal at RA Capital Management, initially connected with the Exo team in 2020 and RA Capital made its initial investment in the Series B extension later that year.

He expressed being “immediately compelled” by the technology and its potential for scalability. Scheiner also highlighted the improvements he observed in Exo’s technology and his growing confidence in Akkaraju’s leadership.

Healthcare Technology Trends

“We are witnessing an expanding landscape of opportunities within healthcare technology as advancements are made and costs decrease,” Scheiner added. “Sandeep’s vision of democratizing ultrasound was previously unattainable. We are observing the market in its nascent stages, but recognize its substantial potential. Every physician should have access to this technology to enhance their diagnostic capabilities.”

As both technology and biological understanding progress, this sector is poised for continued growth.