Garber VC Fund Invests in Philadelphia Medical Imaging Technology Firm
The Garber Venture Capital Fund, an MBA student-centric VC fund at the Penn State Smeal College of Business, recently closed a transaction to invest $150,000 in Real Time Tomography (RTT), LLC, a medical imaging technology firm based in suburban Philadelphia.
The Garber Fund invests in early stage companies with a focus on information technology, life sciences and other highly scalable business models. Used within a course environment, the fund allows Smeal MBA students to experience firsthand all aspects of venture capital investing.
MBA students become general partners in the fund by enrolling in the Garber Practicum entrepreneurship course (ENTR 503) in the Smeal MBA Program. Entrepreneurs from several prospective investment properties visit the class each semester to present their business concepts to the fund partners. Student teams then perform due diligence on the firms and select one or two for more detailed analysis.
Toward the end of the seminar, the teams present their findings to their peers, who vote on which, if any, properties warrant an investment. The decision process includes which investment vehicle is most appropriate (debt or equity), the amount of the investment, and other issues including warrant coverage, valuation, discounts, and tranches or milestones that trigger additional investment.
The Garber Fund's investment in Real Time Tomography will help the firm to further develop its medical imaging technology for early breast cancer detection. RTT develops state-of-the-art image processing and reconstruction solutions for next-generation medical imaging systems. Its patent-pending Dynamic Reconstruction and Rendering technology will advance digital breast tomosynthesis—a new 3D imaging medium for the early detection of breast cancer—and provide radiologists with greater and more efficient capabilities to interpret image data for more accurate diagnosis.
"I am delighted that the Garber Fund recognizes that Real Time Tomography's innovative technologies will improve the fight against breast cancer while helping to keep health care costs down," said Susan Ng, chief executive officer of RTT. "Digital breast tomosynthesis will be the next gold-standard in breast cancer detection and RTT is at the forefront in its development. This investment will enable RTT to further develop and market its imaging products and to examine its technology for other applications, such as body tomosynthesis."
The Garber Fund's two-tranche investment of $150,000 will fund the completion of RTT's Adara Net Appliance, a clinical network appliance that receives, processes and transmits mammograms. The Adara Net Appliance enhances mammography images for improved radiologist review and more accurate diagnosis.
About the Garber Venture Capital Fund
The Garber Fund was established in 1999 with a $5 million commitment from Penn State alumnus John Garber and his wife Bette to bring reality to the teaching of entrepreneurship and venture capital. Since July 2002, the fund has made eight investments and currently has three other active investments, in addition to Real Time Tomography: Diamond Back Truck Accessories, a manufacturer and distributor of pick-up truck covers and other truck accessories, Healthy Humans LLC, a provider of e-health portals for patients and doctors to improve health outcomes and lower costs, and INDIGO Biosciences, which has developed a unique method to cryogenically preserve nuclear receptor cells.
For more information, contact David Lipson, director of the Garber Venture Capital Fund, at 814-865-0195.
About Real Time Tomography
Real Time Tomography develops state-of-the-art image processing and reconstruction solutions for next-generation 2D and 3D imaging systems. Its mission is to save lives and reduce health care costs by developing technically innovative products that improve diagnostic accuracy and clinical workflow. RTT's imaging products are easy-to-integrate solutions available to manufacturers of medical imaging systems, helping them to reduce development costs and accelerate their time to market.
For more information on Real Time Tomography, visit www.realtimetomography.com.