Market Overview

Capillary Biomedical Closes $2.9 Million Series Seed Financing for Commercialization of Novel Insulin Infusion Technology


Funding boosts development of breakthrough infusion set designed
to eliminate failures and improve the quality of life for millions of

Capillary Biomedical, Inc. (CapBio) today announced that it has raised
$2.9 million in a Series Seed funding led by the Cove Fund with
participation by a broad syndicate of Angel Groups and accredited
investors. The use of funds will include clinical studies to support an
initial 510(k) filing and preparation for market launch in 2019.

CapBio has developed the SteadiSettm infusion set with
SteadiFlowtm technology, a patented design that addresses
several key failure points with current infusion sets that dramatically
affect the health, quality of life, and cost for the 1.2 million
worldwide insulin pump users. Research results specific to CapBio's
SteadiFlow technology were announced at this year's Scientific Sessions
of the American Diabetes Association in Orlando.

CapBio CEO Paul Strasma stated, "Our SteadiFlow infusion set technology
is designed to reduce set failures, improve comfort and simplify
insertion. It is a best of both worlds design, with a kink-proof cannula
that is more reliable than Teflon cannulas and gentler to the tissue
than steel needles."

CapBio VP of Sales and Marketing, Mark Estes added, "We intend to
partner with leading pump companies to distribute our infusion set
technology. We believe that SteadiFlow technology will help pump users
and those who help care for them by reducing the stress and burden of
pump therapy"

CapBio Co-founder Professor Jeffrey Joseph of the Sidney Kimmel Medical
College at Thomas Jefferson University, added, "Our novel approach is
intended to address the root causes of insulin absorption variability
and infusion set failure which will improve the predictability of
insulin pump therapy."

The core cannula technology was developed by Dr. Joseph at the Jefferson
Artificial Pancreas Center of Thomas Jefferson University with grant
funding from the National Institutes of Health and JDRF, the leading
global organization funding Type 1 diabetes research.

The patent-pending helical infusion set inserter was developed by the
Capillary Biomedical, Inc. team while resident at "The Cove" at UC
Irvine Applied Innovation. The resulting device is expected to have
significant advantages over current infusion sets available in the
market with greater reliability, improved comfort, and greater ease of

The Series Seed financing involved several Angel groups, including Tech
Coast Angels, New York Angels, HBS Alumni Angels of New York, Pasadena
Angels and the Mass Medical Angels,
making the financing one of the
broadest and most successful syndications among Angel investor groups.
Other investors included the ACE Fund, PA Fund and NYA Fund.

About Capillary Biomedical, Inc.

Capillary Biomedical, Inc. (CapBio), headquartered in Irvine,
California, is developing a novel infusion set for use with insulin
pumps for the intensive management of diabetes. The company has
assembled a veteran team of diabetes technology entrepreneurs, conducted
extensive preclinical research, developed a minimal viable product, and
filed multiple patent applications. The company recently completed a
series seed preferred equity financing led by the Cove Fund of Orange
County and syndicated among leading angel groups. Funds will be used for
clinical trials and regulatory clearance leading to commercial launch in
2019. Learn more about Capillary Biomedical by visiting

About the Cove Fund

The Cove Fund is a family of seed-stage venture capital funds that
provides startup funding for promising new Southern California ventures.
The Fund is headquartered in "The Cove" at UC Irvine Applied Innovation,
a centrally located and vibrant gathering place for entrepreneurs,
innovators and investors in the Southern California startup ecosystem.
The $5.6M Cove Fund I began investing in 2015 and currently has 16
companies in its portfolio. Cove Fund II launched in early 2018 with
$14.2M in capital. The funds invest in early stage technology and life
science companies that demonstrate the potential to address large
markets with highly differentiated products and services, and that can
achieve significant value-creating inflection points with their seed

Learn more about the other participating Angel groups:

Tech Coast Angels
York Angels
Alumni Angels of New York
Medical Angels

To obtain illustrations, more information, or to conduct interviews
with Capillary principals or Dr. Jeffrey Joseph, contact Paul Williams
or 310/569-0023.

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