Software-focused growth investment firm JMI Equity invested more than $120 million in medical device software company Greenlight Guru.
The Indianapolis-based startup builds quality management software for medical device companies, and has seen increased interest in the last year as regulatory changes, the shift to remote work and a strained supply chain kept many on their toes.
Greenlight Guru confirmed the fundraise, which was first reported by the Wall Street Journal. It plans to use the additional funds to add new capabilities to its platform and expand its customer base.
“We listened to the needs of the medical device industry and chose JMI Equity as a strategic partner because they are experts at achieving growth by putting the customer first,” CEO David DeRam said in a news release. “We’ve been extremely deliberate when taking on investment because we wanted to ensure we found the right partner for us and our customers. This partnership will allow us to accelerate the value we provide to our customers as we remain committed to helping medical device companies get their life-changing products to patients and achieve our mission of improving the quality of life.”
The startup brings many paper-based processes into software, helping medical device companies prepare regulatory submissions, and with design control and risk management.
For example, it uses machine learning to identify documents that might be affected by a proposed change order, making it easier to understand the potential downstream effects.
Greenlight Guru said it currently has more than 500 medical device customers. Some of them include Centese, a startup making an FDA-cleared device for post-operative surgical drainage, and Sandstone Diagnostics, a startup making a point-of-care testing device, according to its website.
Other startups are also working on different aspects of the medical device development process. For example, BrightInsight, which raised more than $100 million earlier this year, is working to make it easier for startups to develop health apps by helping them meet security and privacy requirements.
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