Kestra Medical Banks New $196 Million in Oversubscribed Funding Round

Kestra Medical Technologies, a provider of wearable defibrillation medical devices, has closed an oversubscribed $196 million Series C funding round.

Headquartered in Kirkland, Washington, Kestra was founded in 2010 by Bain Capital and several professionals from the external (AED) and internal (ICD) defibrillation sectors. 

The company focuses on creating intuitive, intelligent, and mobile diagnostic monitoring and therapeutic technologies for cardiac patients. Kestra’s flagship product, the ASSURE cardiac recovery system, has been prescribed to over 10,000 patients.

The recent $196 million funding round was co-led by Andera Partners, Ally Bridge Group, Longitude Capital, and Omega Funds. New investors included T. Rowe Price Investment Management, Eventide Asset Management, and Gilmartin Capital, while existing long-term investors Bain Capital and Endeavour Vision also participated.

“We are proud to continue our long-time support of Kestra and its people-driven mission to protect patients with technologies that are intuitive, intelligent, and mobile,” said Chris Gordon, a partner at Bain Capital. “We welcome the support of the new investors and look forward to continuing to back Brian and his strong team as they deliver lifesaving products and services that make a difference in patients’ lives.”

The new capital will be used to expand Kestra’s commercial operations and further develop its wearable cardioverter defibrillator (WCD) device which is designed to protect patients at risk of cardiac events.

“This oversubscribed financing is validation of the excitement and confidence that new and existing investors have for Kestra and our ASSURE cardiac recovery system,” said Brian Webster, the president and CEO of Kestra. “With this funding, our team is ready to aggressively compete and accelerate our commercialization initiatives to transform the WCD market with our clinically proven system.”

The wearable medical device market, particularly for cardiac monitoring and defibrillation, is projected to grow significantly in the coming years. According to market analysts, the global wearable defibrillator market is expected to reach $1.6 billion by 2028, driven by technological advancements and increasing incidences of cardiovascular diseases. Other companies participating in the wearables industry include Publicly traded ZOLL Medical, Philips Healthcare, and Medtronic; and privately held Cardiac Science Corporation and Physio-Control, a subsidiary of Stryker Corporation.

“We are impressed with the clinical performance of the Kestra technology, their patient-focused approach, and moreover, the exciting opportunity to penetrate this large and growing patient population,” said Aneta Sottil, a partner at Andera Partners.

Paris-headquartered Andera Partners is an investor in the healthcare sector with a specific interest in MedTech and digital health. The firm’s most recent fund closed in June 2023 with €450 million of capital.

Ally Bridge Group invests in late-stage and growth investments in the life sciences sector. The firm was founded in 2013 and closed its most recent fund in September 2022 with $700 million of capital. Ally Bridge was founded in 2022 and has offices in Hong Kong and New York City.

Longitude Capital invests in biotechnology, medical devices, and health technology companies across all the venture capital investment stages. The Menlo Park-headquartered firm was founded in 2006 and closed its most recent fund in November 2021 with $585 million of capital.

Boston-based Omega Funds is an active investor in therapeutics, medical devices, and digital health. The firm was founded in 2004 and closed its most recent fund in April 2023 with $650 million of capital.

Boston-based Bain Capital invests across numerous sectors including healthcare, technology, and consumer sectors. The firm was founded in 1984 and closed its most recent fund in December 2022 with $11.8 billion in capital.