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$30 million in capital to fund Entellus expansion

By THOMAS LEE, Star Tribune

Last update: November 20, 2009 - 7:13 PM

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Entellus Medical Inc., which is developing an easier, more cost-effective way to treat severe chronic sinus infections, has raised an additional $30 million in venture capital.

The Maple Grove-based start-up said Essex Woodlands Health Ventures of Palo Alto, Calif., led the latest round of financing, along with existing investors Split Rock Partners in Eden Prairie and SV Life Sciences of London. Entellus has raised a total of $45 million.

The company will use the latest money to expand nationally and eventually overseas, CEO Tom Ressemann said. Entellus also plans to launch a more advanced version of its FinNESS treatment system early next year, which could reach 80 to 90 percent of patients who opt for sinus surgery compared with 50 to 60 percent of patients today, he said.

FinNESS, which can be done in a doctor's office under local anesthesia, involves inserting a balloon catheter into the nasal cavity through a tiny incision under the lip, expanding the balloon in the passageway and draining excess mucus from the sinus. Ressemann said sales have been "tremendous," with the number of FinNESS procedures growing about 20 to 30 percent a month since it launched a year ago.

Generating revenue has helped the company win new investors at a time when venture capital is scarce, Ressemann said.

"It was exceptionally hard" to raise money, he said. "It's just unheard of in these times. We feel very fortunate. Being at the revenue stage in this environment is a good thing."

Thomas Lee • 612-673-7744

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