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Cytovale closes $84M Series C to market sepsis diagnostic

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Nov 15, 2023
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Diagnostics company Cytovale raised $84 million in Series C funding to commercialize its sepsis test, CEO Ajay Shah tells Axios.

Why it matters: Sepsis is the third-leading cause of death in U.S. hospitals.

Details: The round was led by Norwest Venture Partners with participation by new investors Sands Capital and Global Health Investment Corporation.

  • The financing included participation from other new and existing investors, as well as the conversion of bridge notes.
  • TD Cowen was Cytovale's financial adviser.

How it works: The San Francisco-based company's flagship product is an FDA-cleared rapid sepsis diagnosis test called IntelliSep.

  • IntelliSep assesses the body's immune response to an infection, using machine learning to characterize white blood cells' responses, which differ between septic and non-septic patients.
  • It generates a diagnostic result in under 10 minutes using standard blood draws.

What's next: Cytovale will use proceeds to bring IntelliSep to more hospital emergency departments and health systems around the country.

  • "This capital should give us runway for multiple years and puts us in a good position with this sizable round," Shah says.
  • The company is generating revenue but he declined to get into specifics.

What they're saying: "Sepsis is the number one cost of inpatient care in the U.S. and it kills more than breast cancer and opioids combined," says Shah.

  • "Until now, health care providers have lacked a fast and reliable test to inform treatment paths," says Norwest general partner Zack Scott.
  • "Offering the first early-detection test on the market, Cytovale has the incredible potential to dramatically improve how our healthcare system gets the right care to the right patients at the right time," says Scott.

Catch up fast: The company last raised in 2019, closing a $15 million Series B co-led by Breakout Ventures and Blackhorn Ventures.

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