OrthAlign Raises $15 Million in Latest Funding Round

OrthAlign Inc. has completed a $15 million round of funding led by current company investors, River Cities Capital Funds, a growth equity firm in Raleigh, N.C., investing in healthcare and IT companies, and Westlake, Ohio-based Mutual Capital Partners, a venture fund investing in rapidly growing, post-revenue technology businesses.

“River Cities has had the opportunity to watch OrthAlign’s technology platform mature, see the build out of its team, and to witness the impressive growth of the business over the past several years. We look forward to partnering with OrthAlign as the company continues to equip surgeons with the tools and information necessary to deliver their patients the highest quality care and consistency every time they operate,” said Carter McNabb, managing director for River Cities.

The growth capital will be used to launch the new hip product OrthAlign Plus, increase OrthAlign’s sales and marketing activities, and continue its international distributor expansion.

River Cities, Mutual Capital Partners, and the other series shareholders have the ability to provide additional working capital to fund future growth initiatives as strategic opportunities arise, according to a release from the company.

OrthAlign’s KneeAlign provides tibial and femoral navigation in a palm-sized, single-use device and is compatible with all implant systems. It already been used in more than 21,000 cases, worldwide, company officials said. OrthAlign Plus, which will be commercially available in early 2015, is a handheld alternative in navigation technology for total hip arthroplasty surgery, allowing surgeons to consistently position the acetabular cup and measure leg length and offset.

OrthAlign Plus received U.S. Food and Drug Administration clearance in June.

“We spoke with many of OrthAlign’s orthopedic surgeon, hospital, and distribution customers and were impressed with the enthusiasm expressed by key opinion leaders at world renowned medical institutions using OrthAlign technology,” said Wayne Wallace, a partner at Mutual Capital Partners. “OrthAlign has the core technology and team needed to build a significant business in a large high-growth market. We look forward to helping the team and building on prior success in the orthopedic space.”

“It’s obvious that the orthopedics landscape is changing considerably. Further differentiation and technological advancement in joint products has become increasingly difficult. The market is now turning to surgical tools and technologies that will make surgeons more accurate, give them greater confidence through real-time data, and provide repeatability. OrthAlign is in a prime position to take advantage of this market opportunity by introducing new products, increasing the reach of our sales and marketing efforts, and expanding internationally,” said William E. Maya, OrthAlign’s CEO. “We are pleased that River Cities and Mutual Capital Partners share our vision and confidence in OrthAlign technology.”

OrthAlign is based in Aliso Viejo, Calif.