Interventional radiology device startup Stratus Medical raises $10M in Series B financing
Interventional radiology device startup Stratus Medical has raised $10 million in new funding, the company announced Wednesday.
Founded in 2019 and based in Texas, Stratus says its mission is to improve the quality of life for chronic pain patients through innovation. It offers tools to aid interventional radiologists and other providers in conducting radiofrequency heat lesion procedures for addressing lower back pain.
Stratus Medical has seen rapid growth in recent years, named to the Deloitte Technology Fast 500 in 2024 after logging revenue growth of 212% over a three-year period. Wasatch Health Partners, a Salt Lake City-based healthcare investment firm, led this Series B financing after previously providing the IR device-maker with a $25 million debt facility.
“The company has demonstrated strong execution, consistent revenue growth, and meaningful progress across technology development and clinical initiatives,” Luke Larsen, VP of Wasatch Health Partners, said in a statement Feb. 4. “We believe the management team is well-positioned to continue building on this momentum."
Stratus Medical highlighted a certain type of back pain—when the vertebral endplates in the spine become damaged, typically from progressive degeneration—as a key target of its technology. Current treatment options include medications, physician therapy and nerve ablation, the company noted, with over 5 million individuals in the U.S. suffering from such vertebrogenic back pain. Its basivertebral nerve ablation technique uses CT reconstruction to assess device placement, offering faster and easier to use treatment that cuts costs for hospitals and ambulatory surgery centers, experts claim.
Proceeds from the financing round will be used to complete development of the company’s radiofrequency generator and nerve ablation technology. They’ll also aim to “expand and protect” the firm’s patent portfolio and fund a clinical study.
“Stratus Medical is proud to work with outstanding physicians, hospitals and ASCs, and we are anxious to deliver additional value with our future [radiofrequency] technologies that this financing enables us to complete,” CEO Bret Boudousquie said in the announcement.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.