Abu Dhabi’s Ghadan Ventures Fund invests in medical devices start-up SonoStik
The funding will be used to launch the company's product in the UAE as well as other markets
Abu Dhabi’s Dh535 million Ghadan Ventures Fund said on Thursday it invested an undisclosed amount in medical devices start-up SonoStik.
The initial round of funding – also known as a series A round – was led by DisruptAD, one of the region’s largest venture platforms that manages Ghadan Ventures Fund. The entities did not disclose any further details about the investment round.
Abu Dhabi-based SonoStik’s first novel product was the SonoStik Guide Wire Introducer – a US patented and Food and Drug Administration-approved medical device that helps in the successful placement of intravenous catheters in patients.
“This investment represents an affirmation of our view that there is a distinct need for a product like this in the healthcare setting, especially in a post Covid-19 world,” said Richard Fogel, chief executive of SonoStik.
The investment will be used to increase the commercial production and launch the product in the UAE as well as other markets, he added.
The Ghadan Ventures Fund is part of DisruptAD’s broader mission to support 1,000 start-ups over the next five years and create a thriving local community of founders, fund managers, incubators and accelerators in Abu Dhabi.
“We are providing a solution to a real, unmet medical need,”Dr Hawaa Almansoori, founder and chairperson of the start-up, said.
“Making it easier to locate veins for infusions and blood tests will not only make the entire process more comfortable for patients, but will save money and staff time in hospitals and other healthcare facilities,” said Ms Almansoori, who is also a member of the Federal National Council of the UAE.
Start-ups in the Mena region attracted a record $1bn in funding last year, according to data platform Magnitt. Although e-commerce and FinTech were the top sectors toattract the most funding, demand for diagnostics and testing services have made the field of medical technology ripe for deals.
In March, Abu Dhabi's state holding company ADQ agreed to merge its healthcare entities Rafed and Union71 with Dubai-based Pure Health to create a major healthcare support services provider.
Pure Health manages a number of hospitals, medical visa screening centers and has 120 laboratories across the UAE. The company has also partnered with the UAE government to conduct Covid-19 tests on all arrivals at the country's airports.
Published: June 3, 2021 05:42 PM