Cere?ve Inc, a privately-held health care company preparing to launch its FDA-cleared insomnia device, has closed a $38 million Series B round of financing led by global investment firm KKR. Also participating in the financing are existing shareholders Versant Ventures, Arboretum Ventures, and Partner Ventures.
Earlier this year, Cere?ve received FDA clearance for its insomnia therapy device that reduces the time it takes people with insomnia to get to sleep.
“We are thrilled to bring on KKR as a business partner to join our very strong and supportive current investor group and look forward to working together as we finalize preparations for our 2017 US market launch,” says Craig Reynolds, CEO of Cere?ve, in a release. “Beyond the launch, this funding will enable rapid expansion to meet pent-up physician and patient demand for a safe, effective insomnia treatment.”
As part of the transaction, Justin Sabet-Peyman, director on KKR’s Health Care investing team, will join the company’s Board of Directors. “Cere?ve has developed a safe and differentiated solution for millions of people who suffer from insomnia,” says Sabet-Peyman. “We are very excited to be partnering with an accomplished management team that has significant sleep sector expertise to bring this innovation to the market.”
Three independent clinical studies conducted on more than 230 patients over 3,800 research nights demonstrated the safety and efficacy of this novel device. (The studies have not yet been published.) With 8 issued and 21 pending patents, the Cere?ve System is comprised of an intelligent bedside device that precisely cools and pumps fluid to a forehead pad worn throughout the night. Clinical subjects found the device easy to use and to wear, and commented that it was a calming and comfortable experience.
Cere?ve will initially deploy its funding to build out its infrastructure and prepare for product launch during the second half of 2017.
For KKR, the investment is part of the firm’s healthcare growth equity strategy, which is focused on high-growth companies for which KKR can be a unique partner in helping reach scale.
