Frank Bonsal-backed CSA Medical Raises $53M to Advance Regenerative Bronchitis Therapy

Frank Bonsal Jr

Frank Bonsal Jr.-backed CSA Medical, which has developed a new therapy to treat chronic bronchitis, has closed a $53 million Series D issue of preferred stock. The legendary Baltimore-based investor, who co-founded New Enterprise Associates in 1978, first invested in CSA Medical in 2011.

TVM Capital Life Science and Yonjin Ventures co-led the Series D, joined by a syndicate of existing shareholders — SV Health Investors, Ascension Ventures, First Analysis, Blue Heron, and Intersouth Partners. Subsequent to the funding, Dr. Luc Marengere of TVM and Dr. Deng Mao of Yonjin Ventures were handed board seats.

Liquid Nitrogen Cryospray

The Boston-based CSA Medical has developed a system called RejuvenAir, which it says addresses the underlying cause of chronic bronchitis. The cryosurgical device delivers a precise thermal dose or “metered cryospray” of extremely cold — about minus 196°C — liquid nitrogen to targeted areas of the lungs. The cryospray is believed to help heal damaged cilia and mucus-producing goblet cells, and additionally create a regenerative effect on endobronchial tissue.

The procedure is minimally invasive, often outpatient or same-day bronchoscopic procedure. RejuvenAir received a breakthrough device designation and investigational device exemption from the FDA in 2019. CSA Medical is now pursuing premarket approval from the FDA and finalizing a commercialization strategy.

“We’re excited to bring new partners on board as we approach the next significant milestone of submitting the RejuvenAir System for regulatory approval,” said CSA Medical CEO Wendelin Maners, a former Boston Scientific executive. “This new investment further validates the enormous market potential for the RejuvenAir therapeutic platform in this under-served patient population.”

Pioneering VC
Bonsal, Jr., along with Charles (Chuck) W. Newhall III, co-founded New Enterprise Associates, one of the oldest venture capital firms in the United States. He retired from the firm in 2003 and has since remained an active investor, primarily as a founding member of Red Abbey Venture Partners.

Bonsal has been associated with several venture capital firms, including Amadeus Capital Partners, Boulder Ventures, Novak Biddle Venture Partners, Sterling Venture Partners, Trellis Ventures, Venturehouse and Windward Ventures.