San Diego-based Obalon Therapeutics, a developer of gastric balloon technology for weight loss therapy, has received $20 million in Series D funding and a $10 million loan from Square 1 Bank. The Series D investors included Axon Ventures, Mirae Asset Venture Investment, Striker Asia Opportunities Fund, Domain Associates, InterWest Partners and Okapi Venture Capital.
SAN DIEGO, Jan. 14, 2015 /PRNewswire/ — Obalon Therapeutics, Inc. today announced the completion of a $20 million Series D private equity financing and a $10 million term loan from Square 1 Bank. Proceeds of the new financing will be used primarily to fund U.S. clinical trials to support the U.S. Food and Drug Administration (FDA) approval of the Obalon balloon, a novel, nonsurgical, fully-reversible device for weight loss.
According to the World Health Organization, 500 million people are obese. Bariatric surgery is costly, irreversible and used in less than one percent of the eligible population. Physicians, patients and payers all agree there is a compelling need for new products and technologies to address this gap.
“We are impressed with Obalon’s leadership, clinical data and growth strategy and look forward to partnering with the company for years to come,” said Scott Foote, senior vice president and managing director of Square 1 Bank’s life sciences practice in the West.