Private Placement Offering For Israel’s DarioHealth Raises $10.3M

Israeli digital health company DarioHealth,known for creating a cloud-based diabetes monitoring device, announced Friday it had closed a private placement offering, which raised $10,345,000.

As part of the private placement offering, the company issued shares of common stock as well as shares of the company’s new Series D convertible preferred stock.

The private placement was managed by the Israeli firm with the assistance of A.G.P./Alliance Global Partners, which acted as the placement agent for a portion of the offering.

“With 14 consecutive quarters of increasing revenues, 84 percent year-over-year revenue growth from 2016 to 2017, and expected gross margin improvement from service and business-to-business revenues, DarioHealth is on a path of accelerated growth towards profitability,” DarioHealth CEO Erez Raphael said in a statement. “We are very pleased to see a large proportion of this private investment round coming from new institutional, VCs and private investors who are healthcare focused and understand the tremendous opportunity that DarioHealth is executing upon.”

DarioHealth, which is currently listed on NASDAQ, has developed a diabetes monitoring device that enables users to test and track their blood-glucose levels in real time with a smartphone. The device is the size of the user’s palm and offers safety features like emergency hypo alerts through text messages, which include the user’s location. The device has been approved in the US, Europe, Australia and Canada.

The company was founded in 2011 in the coastal Israeli town of Caesarea and has additional offices in New York.