VC-Backed Busts: OmniSonics Medical Technologies

#2. OmniSonics Medical Technologies

Wilmington, Mass.-based developer of ultrasound technology for breaking up blood clots.

Money
OnmiSonics raised around $113 million between 2000 and 2007, from firms like Canaan Partners, Domain Associates, GE Pension Trust, H&Q Capital Management, Johnson & Johnson Development Corp., JPMorgan Partners, Mitsubishi Corp., Nomura Phase4 Ventures, New England Partners and Prism VentureWorks.

What Happened?
The company ceased operations in January, and filed to liquidate via Chapter 7 bankruptcy in March. Scientific advisor Paramjit Chopra told the NY Times that the company was conducting studies on new applications for its FDA-approved device, but “they shut it down cold turkey.”

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