Device VCs Get Advance Look Into Latin America

Article preview from Start-Up - October 22, 2013

Advance Medical Inc. is using $20 million in new capital to expand its reach in Latin America. The company is partnering with US-based medical device companies to sell their products in the region.

Device VCs Get Advance Look Into Latin America

Article preview from Start-Up - October 22, 2013

Venture Capitalist Fred Aslan founded Advance Medical Inc. on the belief that the medical device industry, small companies, and VCs in particular were overlooking Latin American countries as potential markets for international sales, favoring instead more high-profile markets like China and India.

The $20 million Series B from health care VC stalwarts Aberdare Ventures and Arboretum Ventures confirms Aslan’s founding thesis that Latin American markets warrant attention from US medical device start-ups interested in selling devices outside the US. [See Deal] He says the capital will fund the expansion of the firm, which looks to operate almost as a sales and marketing arm for US-based medical device companies.

The capital from the round will fund expansion, but Aslan says he also saw the fundraising process as an opportunity to bring additional insights on the US medical device market into Advance. He says he ran into some of the same disinterested viewpoints that convinced him to start Advance. “We met with a number of firms,” Aslan explains. “The challenge is finding someone who has expertise in health care and is willing to explore new geographies.” He feels he’s done that with the current syndicate. Aberdare partner Darren Hite and Arboretum partner Paul McCreadie will join Aberdare managing partner Paul Klingenstein on Advance’s board.

Using the capital from the round, Advance Medical will expand its existing operations in Brazil as well as Mexico. Advance will use some of the proceeds to acquire Imunotech Sistemas Diagnosticos Ltda., a privately held company in Brazil that’s been selling medical devices, laboratory equipment, and reagents for more than two decades. Aslan says the acquisition solidifies and expands Advance’s footprint in Brazil. Meanwhile, the company also hired Hector Sobrino, MD, as general manager for its Mexico operations. He previously held senior roles at Sanofi, Pfizer, Johnson & Johnson, and WorldCare Clinical.

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