MicroTransponder secures $65 million to expand stroke recovery therapy

MicroTransponder secures $65 million to expand stroke recovery therapy: ©MicroTransponder

MicroTransponder Inc. announced the completion of a $65 million Series F financing round. The investment will support the expansion of its FDA-approved Vivistim Paired VNS System, an innovative therapy designed to improve upper extremity function in chronic ischemic stroke survivors.

The funding round was led by US Venture Partners (USVP) and included participation from existing investors such as Osage University Partners, Action Potential Venture Capital, GPG Ventures, The Vertical Group, and Exceller Hunt Ventures. Two new investors, Gilde Healthcare and Longitude Capital, also joined the round.

"The MicroTransponder executive leadership team is building the company in a very thoughtful way to establish Vivistim Therapy as the standard of care for stroke survivors," said Casey Tansey, a general partner at USVP and a MicroTransponder board member. "We're excited by the combination of commercial excellence and the overwhelmingly positive clinical outcomes that show material improvements in stroke survivors' quality of life with Paired VNS Therapy."

Vivistim is the first and only FDA-approved intervention that has been clinically proven to help chronic ischemic stroke survivors regain two to three times more upper extremity function than high-intensity stroke therapy alone. The device, which received Breakthrough Device Designation from the FDA, is implanted in patients and used in conjunction with vagus nerve stimulation during high-repetition, goal-oriented therapy tasks. This approach enhances neuroplasticity, enabling stroke survivors to make significant improvements in hand and arm function.

The effectiveness of Vivistim has been reinforced by real-world data presented at the 2025 International Stroke Conference. Findings from two independent comprehensive stroke centers complement previously published clinical studies, further validating the therapy's benefits.

"We've built programs in 20% of Joint Commission Comprehensive Stroke Centers and 50% of Becker's 2024 100 Great Neuro and Spine Programs by presenting Vivistim as the evidence-based chronic stroke recovery solution that's been missing from the stroke continuum of care," said Richard Foust, CEO of MicroTransponder. "In partnership with leading health care providers, we've helped build new programs that support our goal of changing the standard of care for stroke treatment across the U.S., renewing hope for stroke survivors and their caregivers."

The rapid adoption of Vivistim highlights the success of MicroTransponder's collaborative approach with hospital systems and clinics. The company has implemented robust education, awareness, and referral initiatives to connect stroke survivors with implanting surgeons and Paired VNS Therapy providers, aiming to make the therapy more widely accessible.