Pandemic boosts demand for direct-to-consumer Eargo as it lands $71m in expansion financing

With demand reportedly increasing for its rechargeable, completely-in-canal hearing aid package that includes online hearing screening and telecare consultation and support, Eargo now has extra capital for an expansion of commercialisation. Its newest release, the Eargo NEO Hi-Fi hearing aid, is currently selling direct from the outfit's website for $2,650, with optional financing.

The latest round of outside equity financing for Eargo brings in new co-investors Gilde Healthcare and Longitude Capital to join existing investors New Enterprise Associates (NEA), the Charles and Helen Schwab Foundation, and Nan Fung Life Sciences, all of who are also participating in this latest Series E round. Geoff Pardo of Gilde Healthcare and Juliet Tammenoms Bakker of Longitude Capital will join Eargo's board of directors.

Pandemic boosts demand

Christian Gormsen, President and CEO, said "We are pleased to close on this financing round, which provides us with significant capital to fund our growth. While our business was performing well before COVID-19, the pandemic accelerated consumer demand for our hearing loss solution. More consumers who are reluctant to purchase their hearing aids through the traditional brick and mortar clinics have recognized the benefits of our solution."

Geoff Pardo, General Partner, Gilde Healthcare, said: "While it is estimated that approximately 43 million people in the US suffer from hearing loss, only approximately 27% own a hearing aid, largely due to the stigma and inconvenience of the traditional clinic-based model. Eargo has revolutionized the hearing loss solution, offering a highly advanced hearing solution available through a virtual clinic model. We're excited to be a part of the Eargo team and their vision to transform this market, bringing it into the 21st century."

Source: Eargo/PR Newswire