Employees Save Spine Company Amid COVID-19 Pandemic

Medical technology company Augmedics Ltd. announced the commercial launch of its xvision Spine System thanks to the $4 million funding effort by its employees.

In December, Augmedics received FDA clearance for its xvision Spine System, an “augmented reality guidance system” for spine surgery. The company was getting ready for its commercial launch and about to close a Series B financing round when the COVID-19 pandemic hit.

COVID-19 cancelled elective surgeries, including spinal fusions, and Augmedics was unable to launch the xvision Spine System. Even more troubling for Augmedics, it lost the backing of venture capital firms when the pandemic stopped investor activity.

In an unlikely turn of events, Augmedics’ U.S. employees formed AUG Management, LLC. Led by Augmedics President and Chief Commercial Officer Tim Murawski, the 20 employees and their families were able to provide $4 million to invest in Augmedics via AUG Management.

Augmedics completed a $15 million Series B funding round this month. In addition to the funds raised by employees, current shareholders Terralab Ventures and AO Invest contributed $3.2 million to the funding round. The remaining funds came from undisclosed investors converting $7.8 million in SAFE (simple agreement for future equity) notes.

Augmedics Global Training Manager Monica Kuhnert told OTW, “It’s exciting to see the level of commitment and dedication each employee has to the organization.”

Kuhnert continued, “Our passion about the technology is shown through our participation in the latest round of funding and the work we put in each day to improve spine surgery.”

Thanks to the employees’ efforts, Augmedics was able to launch its xvision Spine System. Promoted as the “first augmented reality guidance system for surgery,” the xvision Spine System enables surgeons to see the patient’s spinal anatomy through skin and tissue. This “X-ray vision” allows surgeons to navigate surgery while looking at the patient instead of a screen.

Murawski commented on its successful launch saying, “We are a team of problem solvers. The creativity and ingenuity of our company began when Augmedics launched to solve a problem our founder saw in the operating room, and it runs through each and every employee who is working to make the vision a success.“

Murawski continued, “The global pandemic presented just one more hurdle for us to navigate as a team, and we believe it has only made the company stronger.”