Total amount raised
$1.3 Billion
Latest funding date
1/1/2025
Location
Outset Medical has successfully raised $1.3 billion over 11 funding rounds, including its September 2020 IPO on Nasdaq. The latest was a private placement in January 2025. The company offers a portable, versatile, and affordable solution for dialysis through its innovative Tablo Hemodialysis System.
What Is Outset Medical?
Outset Medical, founded in 2010, is headquartered in San Jose, California. The company was established by Leslie Trigg and Michael Aragon.
Outset Medical specializes in the Tablo Hemodialysis System, a revolutionary device designed to simplify and reduce the cost of dialysis treatments. This system is versatile enough for use in both hospital and home settings.
With a workforce of 201-500 employees, Outset Medical is committed to transforming dialysis care through innovation and technology.
How Much Funding Has Outset Medical Raised?
- Private Placement (Series A Convertible Preferred Stock)
- Amount Raised: USD 172,700,000 gross aggregate purchase price (USD 168.8 million from institutional investors closed 8 January 2025; USD 3.9 million from directors, officers and employees issued 7 March 2025)
- Date: January 2025
- Lead Investors: Not publicly disclosed
- Motivation: For general corporate purposes.
- Term Loan (Perceptive Initial Term Loan)
- Amount Raised: USD 100,000,000
- Date: January 2025
- Lead Investors: Perceptive Credit Holdings IV, LP (administrative agent)
- Motivation: Used, with cash on hand, to repay in full the November 2022 SLR credit facilities.
- Term Loan (SLR Term A Loan)
- Amount Raised: USD 100,000,000
- Date: November 2022
- Lead Investors: SLR Investment Corp. (collateral agent)
- Follow-on Public Offering
- Amount Raised: USD 149,085,000 (net of issuance costs, as the 10-K prints it)
- Date: April 2021
- Lead Investors: Not publicly disclosed
- IPO (Nasdaq: OM)
- Amount Raised: USD 254,805,000 (net of issuance costs, as the 10-K prints it)
- Date: September 2020
- Lead Investors: Not publicly disclosed
- Series E
- Amount Raised: $125,000,000
- Date: February 2020
- Motivation: To expand the commercial reach of the Tablo Hemodialysis System.
- Series D
- Amount Raised: $132,000,000
- Date: August 2018
- Lead Investors: Mubadala Investment Company
- Motivation: To scale production and accelerate market adoption of the Tablo System.
- Series C
- Amount Raised: $76,500,000
- Date: May 2017
- Lead Investors: T. Rowe Price
- Motivation: To support ongoing clinical trials and regulatory approvals.
- Series B
- Amount Raised: $91,000,000
- Date: June 2015
- Lead Investors: Fidelity Research and Management Company, CRG
- Motivation: To support the commercial launch of the Tablo System and ongoing clinical trials for expanded indications, including home use.
- Series A
- Amount Raised: $60,000,000
- Date: May 2015
- Lead Investors: Warburg Pincus
- Motivation: To build out its at-home dialysis machine for patients with kidney failure.
- Seed Round
- Amount Raised: $4,500,000
- Date: February 2010
- Motivation: To develop the initial prototype of the Tablo Hemodialysis System.
Total Amount Raised: $1265.59 million. Sum of the page's USD rows; IPO and follow-on are net of costs as the 10-K prints them, and two term loans are included.
Current Valuation: Not publicly disclosed
Key Investors
- SLR Investment Corp.
- Details: SLR Investment Corp. is a specialty finance company and business development company. It was collateral agent for the USD 100 million Term A Loan Outset Medical drew in November 2022 under its SLR credit facilities.
- Investment Focus Areas: Senior secured lending to middle-market and life sciences companies
- Notable Investments: Not publicly disclosed
- Fidelity Research and Management Company
- Details: Fidelity Research and Management Company is a prominent investment firm known for its extensive portfolio in various sectors. They led the $51 million equity financing for Outset Medical.
- Investment Focus Areas: Technology, healthcare, financial services
- Notable Investments: Tesla, Amazon, Alphabet
- Warburg Pincus
- Details: Warburg Pincus is a global private equity firm with a strong focus on growth investments. They have been involved with Outset Medical since its early stages.
- Investment Focus Areas: Healthcare, technology, industrials
- Notable Investments: Bausch & Lomb, Allos Therapeutics, Grifols
- The Vertical Group
- Details: The Vertical Group is a venture capital firm specializing in healthcare and medical technology investments. They are an existing investor in Outset Medical.
- Investment Focus Areas: Healthcare, medical devices, biotechnology
- Notable Investments: NxStage Medical, Cardiovascular Systems, Inc.
- Partner Fund Management LP
- Details: Partner Fund Management LP is an investment firm that participated in the equity financing for Outset Medical. They focus on high-growth sectors.
- Investment Focus Areas: Healthcare, technology, consumer goods
- Notable Investments: Exact Sciences, Moderna, Illumina
- Perceptive Advisors
- Details: Perceptive Advisors is a leading investment firm in the life sciences sector. They joined the equity financing round for Outset Medical.
- Investment Focus Areas: Life sciences, healthcare, biotechnology
- Notable Investments: Axovant Gene Therapies, Acceleron Pharma, CRISPR Therapeutics
What's Next for Outset Medical?
Outset Medical stands at the cusp of a significant opportunity with the commercial launch of its Tablo Hemodialysis System. The U.S. alone has 460,000 dialysis patients, and the annual cost of dialysis to Medicare exceeds $34 billion. The FDA cleared Tablo for home use in March 2020 and cleared the next-generation Tablo platform in January 2026.
Future fundraising opportunities are likely as the company continues to expand its market and product offerings. With the backing of investors like Fidelity Research and Management Company and Warburg Pincus, Outset Medical is well-positioned to attract additional equity and debt financing.
However, challenges remain. Competition from established dialysis machine manufacturers is significant. Ensuring the safety and efficacy of the Tablo System in home settings will be crucial as the company navigates these obstacles.
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