Mark Cuban-Backed Otolith Labs Raises $20M Series A

Otolith Labs makes a wearable device that can treat symptoms of vertigo.

Written by Abel Rodriguez
Published on Sep. 07, 2022
Mark Cuban-Backed Otolith Labs Raises $20M Series A
Photo: Shutterstock

Chronic vertigo is a prologued sense of dizziness or nausea and can lead to hearing loss and severe headaches, among other long-term symptoms, according to the Mayo Clinic. A Washington, D.C.-based startup working to find a treatment to chronic vertigo secured new funding to produce its FDA-backed hardware

On Wednesday, Otolith Labs announced that it closed a $20 million Series A funding round led by Morningside Ventures. The company, which previously received funding from entrepreneur Mark Cuban, produces a wearable device that helps relieve symptoms of vertigo. 

“The closing of our Series A financing led by the expert team of investors at Morningside and the continued support of our existing investors underscores the growing momentum for the first wearable solution for a debilitating problem that adversely affects millions of Americans,” Sam Owen, CEO and founder of Otolith Labs, said in a statement.

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Otolith Labs produces a noninvasive Vestibular System Masking (nVSM) device that is worn on one’s head and applies precise vibrations to provide immediate relief for vertigo symptoms. Last year the company received Breakthrough Device Designation from the FDA for this divide. This designation can help Otolith Labs continue developing of the device and can also help for future FDA approval. 

Otolith Labs conducted a study in which 100 participants were enlisted and divided into a placebo group and an active group that used the nVSM device. According to the company, the active group reported having improved vertigo symptoms three times more than the placebo group. 

“The responders in our pilot studies reported instantaneous relief from their vertigo symptoms. The data from those studies support our plan to release our nVSM technology as an effective and well-tolerated therapy for chronic vertigo,” Owen said. “We founded the company to improve lives and with Morningside’s support, we are on the path to make this vision a reality” 

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