CPE News (5.9.2023) – Ethnocare has raised $2.5 million in seed funding led by AQC Capital and Anges Québec, including $670,000 in financial support from the Government of Quebec’s Impulsion PME program, for which Investissement Québec acts as agent.
Funding will be used for the commercialization of its first product and continue to develop next-generation orthopedic solutions that enable people living with physical limitations to reach their full potential.
Founded by Marc-Antoine Malouin, Louis-Philippe Garneau, and Vincent Breton, Québec City based Ethnocare is the developed of Overlay™, a technology solution that significantly improves the comfort and mobility of amputees. Inspired by sports technology, this revolutionary device uses air to manage variations in the residual limb volume of amputees, improving their comfort.
photo credit: Ethnocare
News Release
Ethnocare Inc. announces closing of $2.5 million funding round
QUÉBEC CITY, QC, May 9, 2023 /Private Capital Newswire (pcNewswire)/ – Ethnocare Inc. today announced the closing of a $2.5 million round to fund the commercialization of its first product and continue to develop next-generation orthopedic solutions that enable people living with physical limitations to reach their full potential.
Ethnocare™ was founded in 2020 in Quebec City. It developed the Overlay™, a technology solution that significantly improves the comfort and mobility of amputees. Inspired by sports technology, this revolutionary device uses air to manage variations in the residual limb volume of amputees, improving their comfort.
The Ethnocare seed funding round was led by AQC Capital and Anges Québec and includes $670,000 in financial support from the Government of Quebec’s Impulsion PME program, for which Investissement Québec acts as agent.
“We sincerely thank our partners, AQC Capital, Anges Québec, Investissement Québec, and our private investors for their confidence. This investment will significantly accelerate our commercialization plan for the U.S. and European markets,” say Ethnocare cofounders Marc-Antoine Malouin, Louis-Philippe Garneau, and Vincent Breton.
Angel investor Bernard Poitras, a member of the Anges Québec network, joins Ethnocare’s board of directors as chair of the board. “This investment round will allow the commercialization and vision of the three founders to become a reality, with the help of two other directors, Daniel Vermette and Jean-Philippe Carmona,” says Poitras. “Ethnocare is fortunate to have a competent, ambitious management team with great values that is eager to learn, excel, and have a positive impact.”
“AQC Capital is proud to invest in Ethnocare and support its mission to provide an innovative solution to improve the quality of life of people living with physical limitations,” mentions Serge Beauchemin, Managing Partner, AQC Capital. “Ethnocare is revolutionizing the orthopedic industry with a first product that brings a significant technological breakthrough and offers unparalleled comfort to users and facilitates their autonomy. Future developments will take the technology even further by adding a digital and connected dimension to prosthetic products.”
The company is determined to redefine industry standards by developing a range of solutions offering added value for all actors in the medical ecosystem.
Since entering the market in early 2023, Ethnocare has already signed two distribution agreements with Canada’s leading players, OrtoPed and BMI, to accelerate its commercialization. These agreements allow Ethnocare to offer its product to more people across Canada. The company is currently developing the U.S., South American, and European markets, putting itself on the international stage and boosting its market exposure.
“With this funding, our government is supporting the development and commercialization of a young company that focuses on innovation in the health sector,” asserts Pierre Fitzgibbon, Minister of Economy, Innovation and Energy, Minister for Regional Economic Development, and Minister responsible for Greater Montreal and the Montreal Region. “With its Overlay product, Ethnocare will help promote the know-how of Quebec entrepreneurs and improve the quality of life of prosthesis users.”
“At Investissement Québec, we are committed to supporting promising young businesses across Quebec and contributing to the emergence of new expertise in key sectors of our economy,” says Guy LeBlanc, President and CEO, Investissement Québec. “Through the Impulsion PME program, we are proud to support Ethnocare in commercializing its innovative device, which will have significant benefits for people living with physical limitations.”
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About Ethnocare
In 2011, the mother of one of the founders experienced significant health problems. Despite all the care provided, sepsis resulted in bilateral amputation below the knees. Following rehabilitation, she was faced with using products that were not adapted to her needs and caused a great deal of discomfort. Today, 11 years later, she still has to overcome these challenges every day. This is why Ethnocare™ was born and why its members got to work developing its first product: the Overlay™, a technological solution that significantly improves comfort for amputees and allows them to gain mobility.
The Ethnocare Overlay
Recently, there have been a number of scientific advances in the field of prosthetics with respect to artificial feet and biomechanical knees, but even so, one issue remains:
Residual limb volume varies throughout the day, leading to pain and adversely affecting users’ quality of life.
That’s why Ethnocare created the Overlay. Inspired by sports technology, this revolutionary device uses air to manage variations in residual limb volume for amputees. The Overlay is made of a breathable fabric and features an air expansion system that the user can adjust for optimal, personalized comfort. Easy to use and intuitive, the Overlay provides a superior fit and can be adjusted through clothing, without removing the prosthesis. In addition, Overlay can be used with most existing equipment, greatly simplifying its market integration.
This new product offers amputees an unprecedented customizable solution, greater freedom of movement, and better quality of life.
Ethnocare has received numerous grants, and its inventions have been filed with U.S. and international patent agencies.
Ethnocare technology roadmap
Ethnocare’s vision is to become a global leader in orthopedic products by providing revolutionary solutions that make a difference in the lives of millions of people. With its bold and innovative approach, the company is determined to redefine industry standards by developing a range of physical, digital, and connected solutions that offer added value for all actors in the medical ecosystem.
See the Ethnocare Overlay promotional video:
Ethnocare’s Overlay – Volume management solution for transtibial amputees
See an Overlay user’s initial reaction:
About AQC Capital
AQC Capital manages two venture capital funds to support start-ups. It invests in Quebec companies in all sectors seeking to bring innovation to global markets. AQC Capital partners with Anges Québec, the largest angel investor network in the country, and together they bring smart capital to start-ups through their experience and network.
About Anges Québec
Through its strong and diverse network, Anges Québec strategically supports angel investors and enthusiastic and innovative entrepreneurs. Founded in 2008, Anges Québec has more than 230 members who have invested nearly $130 million to date in over 190 Quebec companies with strong growth potential, positioning itself as a leader in Quebec’s venture capital industry.
About Investissement Québec
Investissement Québec has a mission to actively participate in Quebec’s economic development by stimulating business innovation, entrepreneurship, business succession, and investment and export growth. Present in all of Quebec’s administrative regions, Investissement Québec supports the creation and development of businesses of all sizes through investments and adapted financial solutions. It also offers many advisory services, including technology support provided by Investissement Québec – CRIQ. In addition, through Investissement Québec International, it supports Quebec companies in their export projects, while prospecting for foreign talent and investment in Quebec.
About Impulsion PME
Impulsion PME, a program managed by Investissement Québec as a representative of the Government of Québec, helps new, innovative companies with high growth potential to gain access to start-up capital. This program was renewed in April 2023 with $120 million in additional funding from the 2022–2027 Québec Research and Innovation Investment Strategy (QRIIS2) and the 2022–2025 Québec Life Sciences Strategy (QLSS).