Madison Scientific, Inc. (MadSci) has secured $7 million in a fully subscribed seed financing round to advance development of its innovative SmartShunt™ Hydrocephalus Management System, the company announced on March 18, 2025.
The funding round was co-led by WARF Ventures, the Isthmus Project, and a successful medical device entrepreneur/investor, with additional participation from institutional investors, family offices, and angel investors. The proceeds will support team expansion, preclinical testing advancement, and prototype development of the company's smart electro-mechanical solution for hydrocephalus patients.
"Hydrocephalus is a challenging condition to manage. Current shunt devices lack the sophistication to alert when medical intervention is necessary," explained Joshua Carson, PhD, Venture Manager at WARF Ventures. "Compounded by high rates of shunt failures, this can be an incredible source of anxiety and stress for patients and families. We believe in the potential of MadSci's smart shunt technology to deliver a better option for hydrocephalus management."
The Hydrocephalus Challenge
Hydrocephalus is an incurable neurological condition affecting approximately one million children and adults in the United States. The condition results from cerebrospinal fluid (CSF) buildup in the brain's ventricles, which can increase intracranial pressure and potentially lead to neurological problems or death if left untreated.
The current standard of care involves surgical placement of a permanent shunt to drain CSF from the central nervous system to other parts of the body. However, traditional shunts have seen minimal innovation since their introduction nearly 75 years ago and are highly prone to failure. Clinical data indicates nearly 40% of shunts fail within the first year of placement, with the majority failing within two to three years.
SmartShunt™ System: A Next-Generation Solution
MadSci's SmartShunt System represents a significant technological advancement in hydrocephalus management. The system integrates both diagnostic and therapeutic functions to enable personalized treatment approaches.
Key features of the SmartShunt System include:
- A proprietary valve mechanism
- State-of-the-art intracranial pressure (ICP) sensor
- Advanced algorithms to optimize shunt drainage based on individual patient needs
The technology aims to leverage ICP readings to reduce life-threatening shunt failures while facilitating on-demand and informed patient management. This approach could substantially reduce the uncertainty and anxiety experienced by patients and their families.
"We are committed to improving outcomes for the underserved population of hydrocephalus patients," stated Tyler Wanke, MD, MBA, MEM/MSDI, CEO of MadSci. "The team has made tremendous progress, and we are grateful for the strong support from our investors as we look to bring this much-needed innovation to market."
Additional Funding Support
Prior to this seed financing round, Madison Scientific secured several non-dilutive grants to support its development efforts, including:
- A Phase I Small Business Innovation Research Program (SBIR) grant from the National Institutes of Health (NIH)
- A Phase 2 SBIR Grant from the National Science Foundation (NSF)
These grants have provided additional resources to advance the company's innovative technology platform.
Development Status
The SmartShunt System is currently under development and has not yet received regulatory authorization for use. It is not available for sale in any country. The company continues to work toward bringing this technology to market to address the significant unmet needs of hydrocephalus patients.
