Financing helps MIMOSA Diagnostics expand into U.S. market

MIMOSA Diagnostics has closed a round of financing that will enable the Toronto-based medtech startup to hire additional staff and expand into the U.S. market. 

The financing – a convertible debenture – was led by Archerwill, Tidal Venture Partners and the XDL Group.

A dollar value was not released.

“This funding will enable us to expand our operations and accelerate our growth plans, particularly in the U.S., ultimately helping us to bring the MIMOSA Pro to more health-care providers,” said Dr. Karen Cross, CEO and co-founder.

The company’s flagship product is the MIMOSA Pro, a portable imaging device that allows clinicians to detect biomarkers below the skin’s surface and efficiently determine the next steps for early intervention and treatment. It provides detection help for burns, wound care, peripheral vascular disease, and more. The device’s portability allows patients from all over the globe to access health care and connect with expert clinicians from anywhere, according to the company.

The MIMOSA Pro is an imaging platform where clinicians can capture three images (oximetry, thermal, and digital) in less than one second. The images are immediately uploaded to a secure MIMOSA web portal for clinicians to review, interpret and track patient progress over time..

MIMOSA Diagnostics was launched in 2016 by Cross, a plastic and reconstructive surgeon and scientist, and Dr. General Leung, a magnetic-resonance physicist at St. Michael’s Hospital’s MRI Research Centre and an assistant professor in the University of Toronto’s Department of Medical Imaging. 

MIMOSA participated in Communitech’s Fierce Founders Intensive Track programs in 2022 and 2023. The startup’s leadership team leveraged opportunities to connect with experienced mentors who, according to Cross, have done a lot to guide MIMOSA over the past year.

“This (Fierce Founders) program stands apart from many in that the mentors we’ve engaged with do so actively and take a genuine interest in our success,” said Cross. “Communitech and their team is an absolute pleasure to work with.”

Cross added: “MIMOSA is undergoing natural changes and as the company evolves, we have set our sights on commercialization. As we have looked to face these new challenges, the Fierce Founders programs have connected us with incredible mentors who have coached and continue to coach us through these challenges.”

Irvine Weitzman, President of Archerwill Investments, said his company is “thrilled” to be working with MIMOSA.

"We believe that their technology has the potential to transform the way we diagnose and treat tissue injuries, and we are excited to support their growth,” he said.

Vic Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade, said MIMOSA is the kind of innovative company that the province is keen to support.

“Part of our government’s plan to build Ontario is ensuring that companies, innovators and entrepreneurs have the support they need to advance next-generation health technologies,” Fedeli said in a news release. “The new Life Sciences Innovation Fund will foster more innovation and ensure Ontario continues to lead the pack in the life sciences sector now and for generations to come.”

Cross said that MIMOSA will use part of its new funding to add 12 more employees to its current team of 23.

“Operations and manufacturing will see a portion of these roles, but the majority will fall into a growing sales and marketing team,” she said.