Participated · Series D · Mar 2019

Eargo is a medical device company on a mission to improve the quality of life of people with hearing loss. It offers a virtually invisible, rechargeable, completely-in-canal, FDA regulated, exempt Class I hearing device that consumers can purchase online or by phone. The company provides personalized consultation and ongoing support from licensed hearing professionals via phone, text, email or video chat. Eargo launched its 4th generation product, the Eargo Neo HiFi, in January, with improved audio fidelity and bandwidth. Led by President and CEO Christian Gormsen, the company is focused on expanding commercialization to meet accelerated consumer demand. The recent financing is intended to provide additional capital to support that expansion. Eargo designs small, virtually invisible rechargeable hearing aids sold direct to consumers, packaged in an AirPods-style chargeable case. Its newest device, the Eargo Neo ($2,550), can be customized remotely via the case’s Bluetooth connectivity; Neo is the company’s third product line following the Eargo Plus ($1,450) and Eargo Max ($2,150). The company says it has about 20,000 users and aims to destigmatize hearing loss while targeting baby boomers with further product innovation. Eargo sells premium-priced devices and notes that, aside from some Medicare Advantage programs, insurance generally provides no reimbursement for hearing aids. The business plans to use new capital to continue crafting and innovating new products and to build a consumer hearing-health brand. Eargo is a Mountain View, CA-based direct-to-consumer hearing technology company that creates Class I, FDA-regulated hearing devices. The devices are developed by a team of licensed professionals and are designed for mild to moderate hearing loss, not to restore normal hearing. Eargo sells its devices via a direct-to-consumer model. The company closed the first tranche of an aggregate $45m Series C funding round. It intends to use the funds to accelerate product innovation and to expand marketing and branding initiatives. The company is led by CEO Christian Gormsen. Eargo is a consumer medical device company that designs nearly invisible in-ear hearing devices for people with mild to moderate hearing loss. Its devices use patented Flexi Fibers, invented by ENT surgeon and co-founder Dr. Florent Michel, to suspend the devices in the ear canal and make them virtually invisible. The design leaves the ear canal open to let natural bass sounds pass through, producing a comfortable and natural sound. The company is led by co-founder and CEO Raphael Michel and was also co-founded by Daniel Shen. Eargo is based in Mountain View, California. It raised $25M in a Series B and said it will use the funds to scale business operations and accelerate production of its hearing products. Eargo designs an invisible, rechargeable in‑ear hearing aid that uses soft flexi fibers to suspend a tiny speaker and allow some sound waves through so only target frequencies are amplified. The device comes in two sizes, offers four tap‑adjustable settings, and lets one side be set louder for asymmetric hearing loss. Eargo ships the aid with a portable charger and an inductive home charger; devices sell for $1,980 up front or $96 per month with financing, and users can pay extra for audiologist customization. The company launched out of five years of research and stealth and was founded in 2010 by Dr. Florent Michel and his son Raphael Michel. Eargo cites a U.S. addressable market of 48 million people with hearing loss, 40 million of whom haven’t sought treatment, and notes average U.S. hearing aids cost about $4,200. Company leadership has hinted at adding Bluetooth capability and other “hearable” features in future products.