Valencia, CA - Aug 12, 2025 - SetPoint Medical, a clinical-stage healthcare company dedicated to revolutionizing the treatment of chronic autoimmune diseases, announced the successful closing of an $80 million preferred stock financing round. The round was co-led by new investors Norwest Venture Partners and Viking Global Investors, with participation from new investor Gilmartin Capital and a robust group of returning investors, including New Enterprise Associates (NEA), Action Potential Venture Capital, Boston Scientific, and others. This significant investment will propel SetPoint Medical’s mission to develop innovative neuromodulation therapies, initially targeting rheumatoid arthritis (RA), with plans to expand into other chronic inflammatory conditions.
SetPoint Medical’s latest funding round raised $80 million in preferred stock financing, complemented by a $65 million debt facility provided by Runway Growth Capital. The round saw strong participation from both new and existing investors, reflecting confidence in SetPoint’s innovative approach to treating autoimmune diseases. Key investors include:
- Lead Investors: Norwest Venture Partners, Viking Global Investors
- New Investor: Gilmartin Capital
- Returning Investors: New Enterprise Associates (NEA), Action Potential Venture Capital, Boston Scientific, Topspin Fund, Euclidean Capital, Morgenthaler Ventures, Richard King Mellon Foundation, ShangBay Capital, Ascendum Capital, Catalio Capital Management, Midas Capital, Citta Capital, SVE Capital, and an undisclosed strategic investor
The financing was advised by Wilson Sonsini Goodrich & Rosati, underscoring the deal’s strategic importance.
Strategic Goals and Use of Funds
SetPoint Medical plans to allocate the funds to achieve the following strategic objectives:
- Advance Clinical Development:
- Complete the ongoing pivotal clinical trial for its neuromodulation device targeting rheumatoid arthritis (RA).
- Support additional clinical studies to validate the platform’s efficacy in other chronic autoimmune diseases.
- Regulatory Milestones: Fund the preparation and submission of regulatory applications to the U.S. Food and Drug Administration (FDA) for approval of its device-based therapy.
- Early Commercialization: Initiate early commercialization efforts, including market entry strategies and partnerships to bring the therapy to patients with RA.
- Platform Enhancement: Invest in further development of the proprietary neuromodulation platform to improve device functionality and expand its applicability to additional inflammatory conditions.
These initiatives aim to position SetPoint Medical as a leader in bioelectronic medicine, offering a potentially safer and more cost-effective alternative to traditional immunosuppressive drug therapies.
Historical Funding and Growth
SetPoint Medical has demonstrated consistent growth and investor confidence through multiple funding rounds since its founding in 2007. Below is a summary of its funding history:
| Year | Funding Round | Amount Raised | Key Investors | Purpose |
|---|---|---|---|---|
| 2007 | Seed/Series A | Undisclosed | Morgenthaler Ventures, Foundation Medical Partners | Initial development of neuromodulation platform |
| 2013 | Series B | $27M | Covidien Ventures, Action Potential Venture Capital (GSK), Boston Scientific, Morgenthaler Ventures, Foundation Medical Partners, Topspin Partners | Expand clinical trials for RA and Crohn’s disease |
| 2023 | Preferred Stock | $80M (Equity) + $65M (Debt) | Norwest Venture Partners, Viking Global Investors, Gilmartin Capital, NEA, Boston Scientific, others | Pivotal trial completion, FDA submissions, early commercialization |
To date, SetPoint Medical has raised a total of $518 million, supporting its growth from a startup to a clinical-stage company with a workforce of 77 employees, headquartered in Valencia, CA.
SetPoint Medical’s Technology
SetPoint Medical is pioneering a bioelectronic medicine platform that leverages vagus nerve stimulation to activate the body’s natural Inflammatory Reflex, producing a potent systemic anti-inflammatory effect. The platform consists of:
- Implantable Miniature Device: A small neuromodulation device implanted to deliver precise electrical pulses to the vagus nerve.
- Wireless Charger: A non-invasive charger to power the device.
- iPad Prescription Pad Application: A user-friendly interface for healthcare providers to customize and monitor therapy.
The technology aims to provide a less immunosuppressive alternative to biologics for RA, potentially reducing side effects and costs. Positive results from a first-in-human open-label trial in RA, presented at the American College of Rheumatology in 2012, showed clinical efficacy comparable to leading immunosuppressive drugs. The company is now conducting a pivotal trial to further validate these findings.
Industry Impact and Challenges
SetPoint Medical’s approach has the potential to transform the treatment landscape for chronic autoimmune diseases, which affect millions worldwide, including over 1.5 million RA patients in the U.S. alone. By offering a device-based therapy, SetPoint aims to reduce reliance on costly and potentially risky immunosuppressive drugs. However, challenges include:
- Regulatory Hurdles: Navigating the FDA’s rigorous approval process for a novel medical device.
- Market Adoption: Convincing healthcare providers and patients to adopt a new treatment paradigm over established drug therapies.
- Scalability: Ensuring the platform can be cost-effectively scaled for widespread use.
Despite these challenges, SetPoint’s technology aligns with the growing interest in bioelectronic medicine, positioning it as a frontrunner in this emerging field.
Market Context and Industry Trends
The medtech sector is experiencing a robust recovery in venture capital investment, with $4.1 billion invested in Q1 2025, the highest since 2022. This resurgence reflects growing investor confidence in innovative healthcare solutions, particularly in AI and bioelectronics. SetPoint Medical’s funding aligns with this trend, as venture capital firms increasingly back early-stage and high-potential companies in biotechnology and medical devices. The healthcare industry’s shift toward personalized and non-pharmacological treatments further supports SetPoint’s mission, with competitors like Salvia BioElectronics also advancing neuromodulation therapies. However, investor-driven valuations and market uncertainties may influence future funding dynamics.
Stakeholder Perspectives
- Anthony Arnold, CEO of SetPoint Medical: “This strategic investment from global leaders in healthcare technologies marks an important inflection point for SetPoint, supporting a novel approach that holds promise as a better way to treat inflammatory diseases.”
- Norwest Venture Partners: “SetPoint’s innovative neuromodulation platform has the potential to redefine treatment for chronic autoimmune diseases, and we are excited to support their journey toward commercialization.”
- Viking Global Investors: “We see significant potential in SetPoint’s technology to address unmet needs in RA and beyond, and we are committed to backing their vision for bioelectronic medicine.”
These perspectives highlight the strong investor confidence in SetPoint’s potential to disrupt the autoimmune treatment market.
Stakeholder Insights
The participation of strategic investors like Boston Scientific and Action Potential Venture Capital (GSK’s bioelectronics fund) underscores the industry’s belief in neuromodulation as a viable alternative to traditional therapies. The involvement of new investors like Gilmartin Capital signals growing interest in bioelectronic medicine as a high-growth sector. Additionally, the legal expertise provided by Wilson Sonsini Goodrich & Rosati ensures that SetPoint is well-positioned to navigate complex regulatory and commercial landscapes. The diversity of investors, from venture capital firms to strategic healthcare players, reflects a broad consensus on the transformative potential of SetPoint’s technology.
About SetPoint Medical
SetPoint Medical, founded in 2007 and headquartered in Valencia, CA, is a clinical-stage healthcare company dedicated to treating chronic autoimmune diseases through its proprietary neuromodulation platform. With a team of 77 employees, the company focuses on developing device-based therapies that stimulate the vagus nerve to modulate the body’s inflammatory response. Initially targeting rheumatoid arthritis, SetPoint aims to expand its platform to address other inflammation-mediated conditions, such as Crohn’s disease. The company has raised $518 million to date and is committed to improving patient outcomes with safer, cost-effective alternatives to drug therapies.
Future Outlook
SetPoint Medical is poised to achieve significant milestones in the coming years, including the completion of its pivotal RA trial and potential FDA approval of its neuromodulation device. The company plans to expand its platform to other autoimmune diseases, leveraging its scalable technology to address a broader market. With strong investor backing and a clear strategic roadmap, SetPoint is well-positioned to lead the bioelectronic medicine revolution, potentially transforming the standard of care for millions of patients worldwide.
Media Contact
SetPoint Medical
Email: info@setpointmedical.com
Website: www.setpointmedical.com
