Eight Canadian healthtech companies part of initial MedTeq fund investments

Eight Canadian healthtech companies have received investments from Montreal-based MedTeq, a pan-Canadian health-technology investment organization, as part of its first round of venture investments.

The eight healthtech companies raised a total of $11 million from a number of investors including MedTeq.

For its initial investments, MedTeq co-invested in funding rounds for eight companies alongside Anges-Quebec, Anges-Quebec Capital, Innovacorp, and Real Ventures, among others. The investments are in part fuelled by MedTeq’s $14 million fund, aimed to help mature technologies, accelerate innovation, and de-risk companies. The following eight companies raised collectively raised $11 million from all investors:

Densitas (Halifax, NS), develops advanced breast imaging analytics technologies powered by machine learning, with the goal to deliver on-demand actionable insights that improve the quality of breast health management.

MIMS (My Intelligent Machines) (Montreal, QC), uses genomics and machine learning to help Pharma, Biotech and Agritech companies analyze genomic, clinical, phenotypical, and environmental data, to develop more efficient, personalized and ecologically responsible medicine and agriculture.

My01 (Montreal, QC), makes a digital device that aids in the diagnosis of Acute Compartment Syndrome (ACS). ACS occurs when muscle pressure builds to dangerous levels. This pressure can decrease blood flow, which prevents nourishment and oxygen from reaching nerve and muscle cells.

Optina Diagnostics (Montreal, QC), is focused on the development of technology for the early detection of diseases through hyperspectral imaging of the retina. Optina Diagnostics applies AI to detect biological marker detection. Its currently attempting to apply its AI-powered approach to the early diagnosis of Alzheimer’s. Last September, the company partnered with Imagia to build out its device.

Saccade Analytics (Montreal, QC), Saccade Analytics develops specialized medical software that revolutionizes the way doctors diagnose concussion, dizziness, and neuro-degenerative diseases.

Spinologics (Montreal, QC), Spinologics focusses on developing improved spinal care products, specializing in biomechanical simulations to optimize medical devices design and performance. The company specializes in the design, development, manufacturing and distribution of orthopedic instruments, spinal implants, disposable surgical instruments.

Spring Loaded Technology (Halifax, NS) uses liquid spring technology in compact bionic knee braces. The company has previously raised $1.9 million in Seed money from Build Ventures in 2016 and $2.46 million in 2017. The company also has a contract with the Canadian Department of National Defence, worth roughly $1 million.

Thorasys (Montreal, QC), has developed portable devices for lung function screening, diagnostics, and monitoring that provide clinically relevant information in patients of all ages. The device is designed to be used in Pulmonary Function Testing labs, doctor’s offices, point-of-care, and the patient’s home.

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Launched in January 2013, with the financial support of the Quebec Ministry of Education and Higher Education, MedTeq’s one-year-old fund invests between $50,000 and $1 million in early-stage healthtech companies, for their Seed or Series A rounds. It offers loans, convertible notes, and equity for its members. MedTeq classifies itself as a hybrid organization that sits somewhere between an angel and a VC, telling BetaKit that although it is not incorporated as an angel investment institution, it does act like one. The fund’s limited partners are not being disclosed.

“MedTeq is seeking to financially support health-technology companies across Canada who share our vision that a collaborative approach de-risks health products and services,” said Jacques Milette, president of MedTeq’s board of directors. “Starting in Quebec…we are looking forward to developing opportunities in British Columbia, Ontario, Alberta, Manitoba and Saskatchewan in the months to come.”

One issue MedTeq tries to address with its investments is around procurement, promoting collaboration between stakeholders, including doctors, insurance companies, hospitals, or any potential acquirer. Procurement has been a notorious barrier to commercialization and innovation in the Canadian healthtech sector. Reports have noted that practices within digital health have become increasingly centralized, resulting in a smaller number of opportunities for healthtech companies to see their technologies go to market.

Image courtesy MedTeq

Isabelle Kirkwood

Isabelle Kirkwood

Writer, globetrotter, drone pilot & David Attenborough enthusiast