It was just 2 months ago that we witnessed a game-changing Israeli company go public with Lemonade’s IPO, and now a fellow Israeli innovator also grabs a taste of the NASDAQ pie, hopefully continuing the trend among Israeli startups of aiming for billions rather than a quick exit only worth millions.

Israeli advanced medical imaging startup Nanox raised an impressive $165 million following the company’s NYSE public offering. The IPO share price was marked initially at $18 per share, which was slightly higher than what was expected based on the company’s public prospectus. After the first day of trading on the NASDAQ Global Market, under the ticker NNOX, the Israeli MedTech company’s share experienced a 20% pop, closing the day at $21.7 per share. This puts company valuation at over $1 billion.

Cantor Fitzgerald & Co., Oppenheimer & Co. Inc., Berenberg and CIBC Capital Markets acted as joint book-runners. National Securities Corporation acted as co-manager for the offering.

The “iPhone” of CT machines lands a billion-dollar valuation

Israeli company Nanox has developed over the past 8 years a medical imaging machine called Nanox.ARC. The Israeli innovation brings the expensive and critical CT machine to cost only $10,000, which is but a fracture of the standard cost of the machines that usually cost anywhere from $1 million to $3 million. In addition, the Nanox imaging solution is far lighter and smaller than standard machines, clocking in at only 200 kg compared to its competitors’ chunky weight that can reach 5 tons.

Nanox’s CT scanner is part of a complete solution that’s based on cloud technologies, which offers users a comprehensive medical imaging service, including a massive database to store images, scans, and radiologist’s results in real-time, AI-powered insight and payment systems. Meaning that along with developing and marketing the medical imaging device,  Nanox also offers a pay-per-use SaaS service depending on the number of scans and analysis that a customer requires.  

The company was able to raise $110 million in less than a year leading up to the coveted IPO, with last month Nanox announcing a $59 million funding round. Nanox was founded in 2011 by Hitoshi Masuya and serial entrepreneur Ran Poliakine, who previously founded PowerMat, and leads an R&D department focused on medical technologies.

Despite fundraising hundreds of millions of dollars ($165M from IPO and $137M from previous funding rounds), the company does not yet have a fully functioning product yet. In February, the company announced that it had developed a prototype that aims to change the world of medical imaging forever. Although in reality, the product still needs to go through the process of valuation and approval before it’s ready for mass production. The company reports that the process will take place during H! Of 2021.

In the prospectus, which the company provided NYSE, Nanox hadn’t reported company revenue resources. However, CEO Ran Poliakine noted in an interview with TechCrunch last month that the company earns through licensing sales of designs created for market giants such as Foxconn, SK Telecom, and FujiFilm.