Until now, the market has lacked a mask designed for safe ventilation during anesthesia that significantly reduces the risk of post-anesthesia infections and complications. In light of the promising international success of this Hungarian project, further development of the product has been enabled by a new capital injection. This innovation benefits patients by saving time and money, as fewer patients will require prolonged hospitalization.

A Hungarian-founded startup specializing in medical technology research and device development is making rapid progress toward launching a laryngeal mask for anesthesia. This mask has the potential to drastically reduce traumatic complications caused by tracheal insertion.

Investment and Development Milestones Vespucci Partners, a venture capital investor, first invested in innoMask during its seed phase in 2020. The successful progress of the development and the authorization of clinical trials paved the way for another capital raise this September, involving Széchenyi Alapok Zrt., Óbuda Uni Venture Capital (OUVC) Zrt., and a private investor. This funding marked the transition of the project from the seed phase to the Series A phase.

Exit as the Next Step? "We're delighted that the valuation of another of our companies has significantly increased. In innoMask's case, the company?s value has tripled with this new funding. If all goes well, they might not need another investment round, and the next step will likely be an exit ? probably within two years," said Júlia Sohajda, co-founder and managing partner of Vespucci Partners, in an interview with Index. The venture capital firm specifically seeks to collaborate with startups that offer high added value in technical innovation.

A Creative Leap in Anesthesia Technology To put things into perspective: laryngeal masks are widely used in healthcare during anesthesia. However, current market options have a significant drawback. When inserted into the trachea, these masks can injure patients' throats, leading to traumatic complications. As a result, patients may need extended recovery time in healthcare facilities, which adds costs for health insurers.

This new Hungarian innovation has created a product that, compared to existing solutions, is much smaller upon insertion and expands to its final size only once in the desired position.

The mask ensures a secure airway and safe ventilation during surgery. After the procedure, it can be deflated and easily, safely removed, minimizing the risk of airway injuries. This, in turn, significantly reduces the likelihood of post-surgery infections. By effectively lowering complications, fewer patients will need prolonged care, saving both time and money for healthcare providers.

A 100% Hungarian Innovation It's worth emphasizing that the company behind this mask is entirely Hungarian-owned, founded, and led. The development team is also composed of Hungarian professionals. The necessary infrastructure for the innovation was provided by Medres Kft., another Hungarian company with substantial experience and advanced technological capabilities in medical device development.

Júlia Sohajda noted that Medres Kft. has a strong track record of successfully executing similar projects, combining engineering expertise, innovation, and technical resources with a thorough understanding of multi-year approval processes.

The Future of Medical Technology Investments Vespucci Partners ventured into the med-tech industry with innoMask in 2020. Since then, they have invested in other startups with similar profiles, including biotechnology companies.

?We?ve become familiar with many players in the med-tech startup ecosystem and built a brand. Today, healthcare technology and biotech startups actively seek us out,? said Sohajda. She added that all investment proposals undergo a multi-step due diligence process, including financial, legal, technical, and HR assessments. The latter helps gauge the team?s goals, competence, and commitment. Technical evaluations involve experts inspecting the product in a nearly sterile environment with advanced air filtration systems.

Navigating Market Challenges The venture capital firm evaluates several factors before investing in medical devices or biotech developments. These include whether the innovation is invasive or non-invasive, the length of the approval process, resource requirements, and potential returns.

It?s also essential to consider that startups in this field often aim to license their innovations rather than bring them directly to market. Competing with large distributors is costly, as they dominate the market. These major players often acquire fully approved, innovative technologies. Hence, small development companies might focus on selling their patented intellectual property (IP).

This IP package includes all development knowledge, documentation, manufacturing processes, and sometimes clinical experience. For large corporations, acquiring such a package provides a valuable, complete solution. This acquisition presents the startup with an exit opportunity, commonly referred to as an IP exit in med-tech.