After previously investing in the Pretoria-based ehealth startup hearX Group in 2019, Bose Ventures, the Massachusetts, United States-based venture capital arm of Bose International has returned to take the startup to a new funding round. The startup which is working to make hearing healthcare technologies more available has announced it has completed a US$8.3 million Series A fundraise with intentions to expand to the United States (US).
“Support from Bose Ventures will enable hearX to more aggressively tackle hearing loss and advance hearing care solutions. Our team has worked tirelessly to touch over 1.5 million lives globally, so an investment of this magnitude in hearX is tremendously rewarding and motivating for us all,” said hearX chief executive officer (CEO) Nic Klopper.
Although Bose Ventures led this round with US$3 million in investment, South African VC firm HAVAÍC, Futuregrowth Asset Management and Sphere Holdings also joined.
The investment will boost the launch of its premium, a direct-to-consumer hearing aid solution — Lexie Hearing — by hearX in the United States. Lexie provides a robust and affordable US-developed hearing aid solution, using smart technology, from as little as US$ 39 for 24 months without compromising efficiency.
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Why The Investors Invested
Bose Ventures was launched in 2018 by Bose Corporation an American company which builds wearable solutions that deliver audio quality for listening to music, talking on the phone, or using VPAs, using sensors to track head motion, and the GPS from an iOS or Android device to track location. Bose Ventures has the capacity to invest up to $50m in startups focused on apps, services, or technologies for the Bose AR platform. Investment into hearX Group therefore aligns with its investment mandate.
On the other hand, Futuregrowth, HAVAÍC and Sphere Holdings are all investment firms based in South Africa. While Futuregrowth just recently, in 2020, invested in SweepSouth, HAVAÍC has been active since 2016 investing in notable startups such as Mpost; delvv.io; Digital Cabinet; RecoMed; Aura; Instant Property, etc. Based in Johannesburg and founded in 2003, Sphere Holdings is a private equity company investing in companies that provide engineering and industrial plant maintenance services, engage in mobile crane hire business, software development operations, financial services, telecommunications and distributor of consumer and industrial products.
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On why it invested, Amrish Narrandes, head of unlisted equity transactions at Futuregrowth, noted that backing entrepreneurs that are creating South African products, services and IP, and taking it to the rest of the world remains the company’s greatest commitment.
“What we particularly liked about hearX is that it is disrupting the traditional hearing healthcare industry by democratizing and decentralising access to hearing care,” he said.
A Look At What hearX Group Does
HearX Group, founded out of the University of Pretoria, began trading in 2016 with the goal of marketing emerging technology to alter the face of hearing treatment. Initially, it concentrated on clinical wireless audiometers, later branching out for audiologists and retailers into lead generation tools.
Its current offering includes an end-to-end hearing care approach that helps direct-to-consumer and over-the-counter markets to compete with role-players in the hearing aid industry, and for this reason the new funding round has been increased to scale.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer
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