The funding again came entirely from Texas private equity firm Southlake Equity Group, said Tom Keene, managing partner at Southlake.
Keene said when Southlake made its initial investment of $7.5 million in June 2016, it also committed to another $7.5 million in a second tranche, which was deployed in February 2017. The SEC filing for this second investment was not filed until December.
The investment gave Southlake a minority ownership stake in Titan Spine. Dr. Peter Ullrich, Titan’s chief executive officer, and a number of others make up the majority ownership group.
“The amount that we invested was committed all upfront,” Keene said. “It’s just a new draw on committed capital.”
Kevin Gemas, president at Titan Spine, said the funds are being used for general corporate purposes.
“That could be everything from infrastructure to inventory,” Gemas said. “There’s a lot of instrumentation that we have to build out and then consign to hospitals upfront, which requires a lot of capital upfront.”
Titan, founded in 2006, makes a line of titanium interbody spinal implants equipped with a special grooved surface that encourages bone growth. The products are developed at its Mequon headquarters and manufactured in Brown Deer. Its 2017 revenue totaled about $63 million, Gemas said. That’s nearly double its 2015 revenue of $33.5 million. Titan Spine has grown rapidly, and now has about 110 employees.
Titan has been growing at more than 40 percent per year for 10 years, so the company needed resources to sustain its growth rate, Keene said.
Simultaneously, Titan Spine raised a separate, indefinite series B equity fund for early investors, launched in June 2016, that totaled $202,262; and a series B round launched in August 2016 that now totals $1.8 million, according to a December 2017 SEC filing.
In 2011, Titan raised $2.6 million in debt from 12 investors, according to another SEC filing.