Non-invasive medical devices attract investment
By Buzzy Gordon

JERUSALEM (January 4, 2001) - As medical, life-sciences, and 
biotechnology start-ups get ready to become the next wave 
of hi-tech interest for investors, replacing the slumping 
Internet sector, one of the hottest new niches in the 
medical devices market comprises non-invasive medical 
procedures - or "health without needles." 

Just yesterday, Jerusalem Global Ventures (JGV) announced 
an investment of $3.6 million in Petah Tikva-based Glucon, 
a seed-stage company founded in June of this year that is 
developing a non-invasive technique for the measurement of 
blood elements and components. This process would facilitate 
home-based, continuous monitoring of glucose for diabetics, 
putting an end to painful and annoying pinpricks to draw blood. 

JGV, a $200m. group of seed-focused venture-capital funds, made 
the investment through the its Neve Ilan-based InnoMed fund, 
which specializes in life sciences and medical devices. 
JGV's chairman is Dr. Shlomo Kalish, while the InnoMed managing 
partner is Dr. Dalia Megiddo. 

According to Megiddo, "Glucon's new product, an innovative 
blood-glucose monitor, will eliminate the discomfort of 
needles and the inconvenience of fluid collection while 
supplying accurate, real-time glucose-monitoring results for 
patients and physicians alike. 

"InnoMed, true to the venture model, provides Glucon's 
entrepreneurs with initial financing and continuing 
support to achieve the company's goals. With InnoMed's 
'Start-Up Acceleration' services backing Glucon's extensive 
technology know-how, Glucon is now well-positioned to reach 
its ambitious milestones." 

This latest development follows InnoMed's recent $2.6m. 
investment in Inventis, a local start-up that has developed 
a device for the non-invasive treatment of male impotence. 

Also in the news this week, OrSense, a start-up medical device 
company based in Rehovot, was awarded "Best Abstract Award" 
for clinical research excellence in the area of non-invasive 
hemoglobin monitoring at the annual meeting of the American 
Society of Anesthesia. 

OrSense's abstract was selected among several thousand which 
were published at the October conference, taking into 
consideration the importance of non-invasive hemoglobin in the 
anesthesia setting, as well as the wide-ranging promise that 
the research represents for medical practice on the whole. 

"We are pleased and encouraged at having received such 
prestigious recognition of our technology, which also has 
very significant applications in the area of non-invasive 
measurement of glucose and cholesterol. We are confident 
and excited by the potential of our technological 
breakthrough and look forward to expanded clinical trials 
and regulatory applications during 2001," said OrSense CEO 
Abe Coriat. 

"Our proprietary sensor technology is designed to non-invasively 
measure multiple and vital parameters, such as blood glucose, 
hemoglobin, cholesterol, and more. Our electro-optical 
technology performs non-invasive blood measurement by means of 
a finger probe, vastly decreasing the need to take blood by 
needle-stick. 

"We aim to bring to market the first universal platform sensor 
of its kind, targeting a potential market worth more than 
$5 billion." 

OrSense, founded in 1996, is backed financially by local 
venture-capital firms Star Ventures Capital Management and 
Tamar Technology Ventures, both of Herzliya. 

Similarly, other non-invasive and minimally invasive 
technologies have received corporate and financial boosts. 
Only two weeks ago, Haifa-based Elbit Systems announced the 
formation of MediGuide, a spinoff company that will focus on 
intra-body navigation applications enabling minimal invasive 
procedures with great accuracy. Discount Capital Markets has 
already invested $1m. in the company, which plans to raise $5m. 

The recently launched Koor Medabiotech Fund made one of its 
first investments in Simbionics, which is developing simulation 
tools for non-invasive surgery. 

Itamar Medical, which is pioneering the development of a 
neurovascular signal that provides a non-invasive way of 
monitoring the autonomic nervous system, was listed by the 
prestigious Ramat Gan research firm D&A Hi-Tech Information 
as one of their top 50 leading private companies in Israel.