Pregnolia raises CHF 4.2 million to advance detection of premature births

25.06.2020 11:08, Isabelle Mitchell

What mechanisms trigger a birth? Several blind spots still exist in our knowledge of gynecology and obstetrics, but one of these gaps is now closer to being addressed: how to reliably diagnose a premature birth. The medical device produced by Zurich-based Pregnolia AG measures cervical stiffness and aims to address this gap. The ETH Zurich spin-off has just successfully raised its second round of funding. Venturelab asked Dr. Sabrina Badir, Pregnolia founder and CEO, about Pegnolia's plans for the future and fundraising during a pandemic.

Screening for premature births using the Pregnolia system aims to reduce the pressure on gynecologists and pregnant women and to lower healthcare-related costs. The level of demand for safe diagnostics for premature births is also reflected in how rapidly Pregnolia managed to obtain series A funding. The offering for the announced CHF 4 million was oversubscribed, even in the difficult environment of the coronavirus crisis. Up to a million francs may additionally be secured in the post-round. Half of the funding was covered by new shareholders and the existing shareholders remain convinced of the success of the Pregnolia system, having further invested in additional shares.

Dr. Badir, the Pregnolia team just raised CHF 4.2 million. Congratulations! How will these funds help Pregnolia achieve its vision? 
Our vision is to establish the Pregnolia System as the de facto standard for preterm birth diagnostics. Currently, the Pregnolia System is available in routine pregnancy consultations to assess the cervical stiffness. The gynecologist interprets the measured cervical stiffness and decides if further measures are needed to prevent a premature birth. With this round, we seek to achieve the mainstream potential of the Pregnolia System by marketing it as a preterm birth diagnostic device. This includes: 1) collaboration with early adopters in private practices and key opinion leaders in large clinical trials to establish the Pregnolia System; 2) obtain market authorization (CE mark) as a diagnostic device for preterm birth, 3) create a distribution network in Europe; and 4) establish reimbursements by health care insurances.

How did COVID-19 influence this financing round?
This financing round was slightly different than the previous round due to the coronavirus. However, in general, the process was the same. The interaction with investors has become less face to face, and discussions moved to the virtual space. One difficulty that we experienced was that some interested investors decided to postpone their negotiations for a potential investment in Pregnolia due to the crisis, as they needed to focus on their existing portfolio. We are in the lucky situation that our vision is very easy to understand by almost everyone. This, of course, helped us a lot to demonstrate that our business case is not threatened by COVID-19 and will also be valid post-pandemic.

Do you have any advice for startups that are raising funds right now? 
Be honest and transparent in your communication. Demonstrate the impact of COVID-19 on your current business case, and show your mitigations. Take as much as you can now, and take it from there.

You were a Venture Kick winner, a Venture Leader Life Sciences, and one of the Top 100 Swiss startups for the last four consecutive years. How have these programs, events, and activities paved the way for Pregnolia’s success? 
These programs have taught Francisco and me to translate our academic project into a convincing business case that answers all the questions investors have when they consider an investment. We are very grateful for this immense support we have received and warmly recommend it to any other founder!