Who will be the next Medtronic? What will be Minnesota's next breakthrough industry? James Walsh will provide the latest information and commentary on the people, companies and trends driving innovation in Minnesota. From visionary entrepreneurs to game changing technologies, this blog offers a window into the future of Minnesota's economy.
AUM Cardiovascular, an award-winning Minnesota medical technology startup, is sponsoring a major pivotal study to prove its non-invasive technology can detect obstructive coronary artery disease (CAD) just as well as a Single Photon Emission Computed Tomography (SPECT) nuclear stress test.
SPECT is the most common nuclear scanning test for diagnosing problems with blood flow to the heart.
AUM’s CADence system is a handheld device, used by a cardiologist, that can quickly spot blockages in blood vessels around the heart after just a few measurements. It uses an algorithm to detect changes in pressure within the blood vessels – changes that could indicate whether those arteries are clogged with plaque.
Marie Johnson, AUM CEO, said CADence is as accurate as a treadmill stress test. Now the study will attempt to prove it.
AUM’s clinical study will enroll 729 patients at 15 trial centers across the United States. Dr. Joseph Thomas, an Assistant Professor of Clinical Medicine at the UCLA David Geffen School of Medicine, will chair the study.
Founded in 2008, AUM Cardiovascular has raised over $5 million from angel investors. In competition against 1,000 companies, AUM won the 2011 Minnesota Cup, an annual statewide competition for promising startups. AUM was recently named one of the top 10 start-up companies in the world by the Innovations in Cardiovascular Intervention conference in Tel Aviv, Israel. The company is located in Northfield, MN.
In addition to the cash prize, the startup named U.S. champion will travel the next day to the Nov. 22 Get in the Ring global finals in Rotterdam, the Netherlands. That entrepreneur will face seven other international finalists, selected from 30 participating nations, for a chance to secure angel investment from a potential pool of €1,000,000, or approximately $1.3 million.
The U.S. finalists were selected from 283 applicants from around the country. They are:
Drazil Foods, Edina, Minn.
EyeVerify, Kansas City, Kan.
MANA Nutrition, Matthews, N.C.
POPVOX, Redwood City, Calif.
St. Teresa Medical, Inc., Maple Grove.
Travefy, Lincoln, Neb.
weeSpring, New York
Get in the Ring was founded in 2009 by the Erasmus Centre for Entrepreneurship in the Netherlands to bring the world's most promising entrepreneurs together with those who can help them succeed and to inspire others to start their entrepreneurial journeys. The international finals are held each November during Global Entrepreneurship Week.
California-based Versant Ventures said it will open a Twin Cities office next month.
The venture firm invests in early-stage medical device and biotech firms out of a $500 million fund.
Versant is an active investor in Minnesota companies. Versant has funded local medical device firms Lutonix, Zyga Technology and RespiCardia, as well as healthcare technology business RedBrick Health. Lutonix, which makes drug-coated balloon catheters, sold for $225 million last year to New Jersey-based medical technology company C.R. Bard.
Kirk Nielsen, a Versant managing director, said he believes Minnesota is a great place to build companies.
“Our opening of an office there is a sign of our long-term commitment to the region,” Nielsen said.
Nielsen will be only investment professional in the Twin Cities office. Prior to joining Versant, he was a sales representative for Medtronic’s Cardiac Rhythm Management division.
Versant currently has three offices in Menlo Park, Newport Beach and San Francisco, California.
The Minnesota Science and Technology Authority faces yet another financial setback.
The group, focused on creating high-paying science and technology jobs in the state, failed to get the $10 million it requested from the state Legislature for the second time in a row.
Instead, the authority will operate on $107,000, not enough to fund all of its programs and two staff members.
“It’s disappointing,” said executive director Betsy Lulfs.
The state set up the authority in 2010. The authority’s advisory commission, made up of officials from the public and private sectors, sought $10 million a year for programs such as advising entrepreneurs and backing promising technologies.
But the Legislature only awarded the group roughly $350,000 for programs last year, which helped pay for student scholarships and assisting companies with federal grants.
Now, the authority will operate on even less —$107,000.
By the end of the month, Becky Aistrup, the authority’s program director for Small Business Innovation Research and Small Business Technology Transfer grants, will leave her position.
She’s accepted a job as a consultant for Michigan-based BBCetc.
That leaves only one staff member — Lulfs. The authority will work on asking for the same amount of money next year, Lulfs said.
“We’re back to where we started,” she said.