Sparrow BioAcoustics Secures $10 Million to Expand Stethoscope App

Sparrow BioAcoustics, a healthtech startup based in St. John’s, Newfoundland and Labrador, has successfully raised $10 million CAD in funding to enhance its smartphone stethoscope application throughout North America. The funding round, which was entirely equity-based, was spearheaded by Killick Capital and Klister Credit, with additional contributions from Pelorus VC, Brinex, and the family office of former Verafin Vice President Kevin Baker.

The financing is intended to support Sparrow as it rolls out its Stethophone platform to hospitals across the continent. Mark Opauszky, CEO of Sparrow BioAcoustics, emphasized the importance of this investment for maintaining the company’s growth trajectory. “This round ensures we can scale responsibly through this critical phase, supporting hospitals and patients with the same focus on quality and outcomes that brought us here,” he stated. He added, “It’s about maintaining the momentum we’ve built while continuing to deliver real clinical value where it’s needed most.”

Founded in 2019, Sparrow BioAcoustics developed the Stethophone, which transforms smartphones into a medical-grade stethoscope. This innovative application utilizes patented bioacoustics technology designed to enhance the clarity of heart sounds beyond what traditional stethoscopes can offer. Users can place their phone against their body to listen to, record, and store heart sounds directly within the app. The application processes these sounds into spectrograms and oscillograms, enabling healthcare providers to pinpoint areas of concern or detect unusual sounds.

Regulatory Approvals and Market Impact

The Stethophone received clearance from the United States Food and Drug Administration in 2023, followed by approvals from health authorities in Ukraine and Canada. According to Dr. Yaroslav Shpak, co-founder and Chief Medical Officer of Sparrow, approximately 40,000 patients and practitioners have utilized the Stethophone over the past year, identifying thousands of cardiac anomalies that might have otherwise remained undetected until later stages of illness.

Opauszky noted that Sparrow is currently collaborating with many key health systems in the United States. The company is especially focused on the detection of valvular heart disease and aims to bring several new developments to the market in the near future. “We have a high-accuracy, scalable solution, and several new developments to bring into the market,” he said, indicating that Canada is also poised for further expansion.

This latest funding round brings Sparrow BioAcoustics’ total funding to approximately $23 million CAD as of October 2024. Opauszky, who joined the company in 2021, previously led the marketing tech startup PathFactory for nine years. His personal journey took a significant turn in 2019 when he faced a life-threatening case of necrotic fasciitis, prompting him to step back from his CEO role temporarily to prioritize his health.

Sparrow BioAcoustics is poised to make a substantial impact on the healthcare landscape in North America, leveraging technology to enhance diagnostic capabilities and improve patient outcomes.