SOURCE: Eargo

Eargo

December 09, 2015 09:01 ET

Eargo Raises $25M in Series B Funding From New Enterprise Associates

Innovative Consumer Healthtech Brand Will Use Funds to Expand Business Operations and Accelerate Production of Its Discreet In-Ear Hearing Device

MOUNTAIN VIEW, CA--(Marketwired - Dec 9, 2015) - Eargo, the virtually invisible in-ear hearing device that is designed to help people live with, and feel better about hearing loss, announces today that it has raised $25M in Series B funding. This financing was led by New Enterprise Associates (NEA), one of the world's largest venture capital firms with deep expertise in technology and healthcare. The new funds allow Eargo to scale business operations and accelerate production of its innovative hearing products.

Almost 50 million people in the U.S. experience mild to moderate hearing loss starting in their 30s, yet the majority of people choose not to address the condition due to the high cost and stigma that can be associated with traditional hearing aids. Eargo has zeroed in on these issues and is focused on empowering people to live and feel better about hearing loss through technological innovation. Eargo developed patented Flexi Fibers, invented by ENT surgeon and Eargo co-founder Dr. Florent Michel, to suspend the Eargo devices in the ear canal, making them virtually invisible. Eargo devices are comfortable, breathable, and natural sounding as they leave the ear canal open to let natural bass sounds pass through.

"Eargo is one of the most innovative and fastest-growing consumer medical device manufacturers in Silicon Valley, and its groundbreaking technology is changing the way people think about hearing loss," said NEA General Partner, Josh Makower, MD. "Because Eargo is at the intersection of consumer technology and healthcare, and is poised to disrupt the traditional hearing aid industry, it is the perfect brand to add to our consumer Healthtech portfolio."

Eargo's new hearing devices are designed to be virtually invisible and comfortable all day long, whether at the office, hitting the gym or meeting up with friends after work. Focused on users' on-the-go lifestyles and desire for simplicity, Eargo devices are easy to use and work right out of the box. They last a full day on a single charge and come with a portable charger that fits in a pocket or purse. Eargo comes with four pre-set sound profiles, which are designed to work for the majority of people living with mild to moderate hearing loss. The company's in-house audiologists and dispensers across the U.S. will also custom-program devices for users who send their audiograms to Eargo.

"Since the launch of our new hearing device earlier this year, we have seen an incredible level of consumer demand and ultimately have been experiencing tremendous growth as a company," said Raphael Michel, co-founder and CEO, Eargo. "We are excited about the expertise that NEA brings to the table as our new investment partner, and together we are strongly positioned to bring innovation in hearing health to the millions who may need a boost but who have remained on the sidelines until now due to cost or stigma."

Eargo was recently named one of Popular Science's Best of What's New 2015. The product was highlighted among this year's breakthrough products and technologies in health because of its discreet in-ear design, comfort, ease-of-use, and pricing of less than half the average cost of a pair of hearing aids in the U.S. To learn more about Eargo's new hearing device, please visit: www.eargo.com or visit the Eargo YouTube page.

Eargo Availability/Pricing
Eargo is available for purchase online at www.eargo.com or by phone at 1-800-61-EARGO and arrives ready to use. The Eargo hearing system, which includes a pair of new hearing devices, the portable charger, and the charging base, is available for as little as $96 a month, and Eargo offers a no money down 60 day test drive. If users prefer to pay all at once, Eargo is also available for $1,980, which is less than half the average cost of a pair of hearing aids in the U.S., and it comes with a 60-day money-back guarantee. Interested customers can also order a free sample kit to experience the comfort and near invisibility of Eargo firsthand before buying.

About Eargo
Eargo is a Silicon Valley-based consumer medical device company focused on innovative hearing solutions. The company created nature-inspired, patented Flexi Fibers and believes that hearing technologies should feel natural, work in harmony with the ear, and fit the user's lifestyle, not the other way around. Eargo believes that caring for your hearing health should not come at the expense of your lifestyle or appearance. The company's team comes from Stanford, MIT, Harvard and Cambridge, and includes medical and consumer technology executives and advisors from Apple, Yahoo, Match.com and large hearing device manufacturers Phonak and GN ReSound. Eargo was co-founded by the father and son team of Dr. Florent Michel and Raphael Michel along with Daniel Shen, and is backed by leading venture capital firms, including NEA, Maveron, Dolby Family Ventures, Crosslink Capital, Birchmere Ventures, Montage Ventures, Peterson Ventures, and Red Sea Ventures.

About NEA
New Enterprise Associates, Inc. (NEA) is a global venture capital firm focused on helping entrepreneurs build transformational businesses across multiple stages, sectors and geographies. With approximately $13 billion in committed capital, NEA invests in technology and healthcare companies at all stages in a company's lifecycle, from seed stage through IPO. The firm's long track record of successful investing includes more than 195 portfolio company IPOs and more than 320 acquisitions. For additional information, visit www.nea.com.

Eargo is indicated for mild to moderate hearing loss. Eargo will not restore normal hearing. Full benefit best obtained with frequent use. Eargo is not available in all states. See eargo.com for more information and labeling.

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