Posted on Jul 31, 2020, 6 p.m.
Eargo has recently secured millions in funding to help take advantage of the demand and expand its commercial effort for the company’s virtually invisible hearing aids, which can be personalized with a smartphone app.
“Life doesn’t stop with hearing loss. And with our award-winning, state-of-the-art hearing aids, our personalized mobile app, and support from our licensed hearing professionals, you’ll hear life to the fullest again in no time. Plus, team Eargo includes dozens of audiologists and professionals with board certifications in hearing aid science, so you can rest easy knowing you’re in good hands,” says the welcome on the company website.
The series E round led by bakers Gilde Healthcare and Longitude Capital raised $71 million, with previous investors joining the financing that included New Enterprise Associates, the Charles and Helen Schwab Foundation and Nan Fung Life Sciences.
"We are pleased to close on this financing round, which provides us with significant capital to fund our growth,” said Eargo President and CEO Christian Gormsen.
“While our business was performing well before COVID-19, the pandemic accelerated consumer demand for our hearing loss solution,” Gormsen said. “More consumers who are reluctant to purchase their hearing aids through the traditional brick and mortar clinics have recognized the benefits of our solution.”
An impact survey conducted by The Hearing Review showed that although 75% of audiology clinics within Canada and America were open and accepting patients they were seeing less than half of their average revenue or the past months.
"While it is estimated that approximately 43 million people in the US suffer from hearing loss, only approximately 27% own a hearing aid, largely due to the stigma and inconvenience of the traditional clinic-based model,” said Gilde Healthcare General Partner Geoff Pardo, who joined the company’s board of directors. “Eargo has revolutionized the hearing loss solution, offering a highly advanced hearing solution available through a virtual clinic model.”
The latest version of the company’s wireless hearing aid was released in January; the fourth generation Neo HiFi has a rechargeable, budlike design that rests completely hidden within the ear canal, the invisible hearing aid can also be personalized with a smartphone app that allows the user to customize their listening profile to their unique lifestyle that is available for newer iPhones and Androids.
“The app allows personalized settings for different listening environments. So whether you're at a restaurant, on the phone, watching TV, or at the theater, you can be sure you won't miss a beat. You can customize your treble and bass settings for each ear and in each program. So whether you're all about that bass or consider yourself more of a treblemaker, you're sure to find the perfect setting for you.”
Juliet Tammenoms Bakker, Managing Director and Founder of Longitude Capital, said, "A hearing solution developed with the consumer in mind was long overdue. Eargo has truly put the consumer first, from consultations and solution design to buying experience and highly rated customer support. We are delighted to partner with Eargo to help fuel the growth of this unique business."
"We are delighted to welcome Gilde and Longitude as our new partners in transforming this industry and helping to fuel Eargo's continued growth. We welcome Geoff and Juliet to the Board and look forward to their contributions in the years to come,” said Josh Makower, General Partner of NEA and Chairman of the Board of Eargo.
Image Credit: Eargo.com
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