VC Dealflow: Jan. 2, 2008

Sante Ventures

Sante Ventures has closed its debut venture capital fund with $130 million in committed capital, overshooting it original $100 million target. The new healthcare-focused fund will invest primarily in seed- and early-stage companies that are developing medical technologies and healthcare services. With offices in Austin, Texas, and Nashville, Sante plans to make deals across the country, but with a focus on the Central U.S.

Medical devices

Cardiac Dimensions

Cardiac Dimensions Inc. of Kirkland, Wash., has closed a $35.5 million Series D financing. Johnson & Johnson Development Corp. of New Brunswick, N.J., and Lumira Capital of Toronto led the funding. Also investing were Japan's Mitsubishi UFJ Capital Co. Ltd., WestRiver Capital of Seattle and Montgomery & Co. LLC of San Francisco, as well as the returning Frazier Healthcare Ventures of Seattle, InterWest Partners of Menlo Park, Calif., MPM Capital of Boston and Polaris Venture Partners of Waltham, Mass. The funds will be used for clinical trials in the U.S. and Europe of the Carillon Mitral Contour System for percutaneous treatment of mitral regurgitation. Cardiac Dimensions develops and manufactures devices designed for treating heart failure and related conditions.

Mitralign

Mitralign Inc. has closed a $24 million Series C financing that will enable the company to complete its initial clinical testing and obtain CE Mark approval of its Mitralign System, a catheter-based method to treat mitral regurgitation in patients suffering from congestive heart failure. Medtronic Inc. of Minneapolis and Johnson & Johnson Development Corp. of New Brunswick, N.J., led the round. Also participating were Oakwood Medical Investors of Cleveland, Palisades Capital Advisors LLC of New York and Accelerated Technology Partners and existing investors Forbion Capital Partners of Naarden, Netherlands, Giza Venture Capital of Tel Aviv, Oxford Biosciences Partners of Boston and Triathlon Medical Ventures of Cincinnati.

Software

Hi-Tech Solutions

Hi-Tech Solutions Ltd., a developer of homeland security-related technology, has raised $3 million in second-round financing from Pegasus Capital Advisors LP of New York. It will use the capital for R&D and marketing in the U.S. and European markets. HTS' technology is used in commercial OCR systems for security, automation and management applications in the ports and traffic markets. Its products focuses on two primary markets: container recognition in ports and applications in the license plate recognition market.

Energy

SensorTran

Energy technology company SensorTran Inc. has received an $8 million investment. New investor Advantage Capital Partners and prior investor Expansion Capital Partners, both of New York, led the round. Also participating were existing investors WHEB Ventures of London and Stonehenge Capital Co. LLC of Dallas. The Austin, Texas, company makes distributed temperature sensing technology used to head off energy system breakdowns, including oil pipeline leaks and electric power blackouts.