Laser Diagnostic Detects $8M Round

Eight-year-old Laser Diagnostic Technologies (LDT) Inc. recently raised its largest venture financing to date, raking in $8.75 million from four firms.

Vector Fund Management of Deerfield, Ill., led the early July investment round that included additional commitments from existing investors Newtek Ventures, Sigma Partners and Sorrento Ventures, said Andreas Dreher, president and chief executive at LDT.

San Diego-based LDT intends to use the proceeds from what will likely be its last private financing to further development of its blindness detection products. Currently, the company has three instruments on the market. Two products serve retinal specialists while the third targets nerve fiber analysis. That product detects glaucoma early using a safe low-level laser to quickly scan the eye.

“With these proceeds we can set up a sales force in the U.S. and internationally,” Dreher said.

LDT will also set aside proceeds to cover development costs of a new device that will use a laser to detect age-related blindness. Dreher said the company has developed a new procedure, called MSPT, that enables physicians to look into the retina to discover AMD. Currently, the only procedure to detect this malady requires a dye be injected into the blood stream. Currently in clinical trials, Dreher expects to have approval in three months and product shipment to begin within the next 12 months.

The company has increased staffing to 65 from 48 since January and plans to move to a 30,000 square foot workspace from its current 11,000 square foot space.

LDT will likely hold its initial public offering within the next two years.