Clarian Ventures invests in Minnesota firm

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Clarian Health Ventures found its latest investment in Minnesota via a Wisconsin venture capital firm. But the company was right under Clarian’s nose in Indianapolis.

Clarian Health Ventures, the venture capital arm of the Indianapolis-based hospital system, joined a gaggle of investors to pump $30 million into Minnesota-based Celleration Inc.

The company has developed and won approval for a treatment that uses low-frequency ultrasound to speed healing of open wounds.

The wound care staff at Methodist Hospital had been using the treatment for a few years and was helping Celleration conduct clinical trials.

Clarian Health Ventures executives Matt Neff and Kyle Salyers were told about Celleration by Heron Capital LLC, an Indianapolis life sciences venture fund, which heard about it from an early Celleration investor, Wisconsin-based Venture Investors LLC.

“One of the things that immediately attracted us to this opportunity was this company’s focus on developing a clinical body of evidence to validate their technology,” Salyers said, adding, “We also found it to be attractive that Clarian was allowed to be involved in that process.”

Other venture capitalists with Indiana ties participating in the latest round of funding include Heron, Indianapolis-based CID Capital, and Cincinnati-based Triathlon Medical Ventures, which has a managing partner in Indianapolis.

Six other out-of-state investors also participated in the deal. Celleration had raised $30 million in three previous rounds of financing.

Salyers said the latest round is meant to grow the company’s business and bring it to profitability. Salyers declined to disclose Clarian’s portion of the financing.

Clarian Health Ventures launched last year with a $25 million fund. Its first investment was in CS-Keys Inc., an Indianapolis firm that discovers and develops biomarkers to help cancer drugs work better. That deal, which included four other venture capital firms, totaled $6.25 million.

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