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Investors line up to aid hospital robot firm
Robinson-based Aethon lands $11 million from investors
Friday, November 18, 2005

It may be tough going for some technology firms braving today's difficult investing climate, but Aethon Inc. Chief Executive Officer Aldo Zini has been turning away investors.

His Robinson-based robotics company landed $11 million this week from venture capital firms led by Palo Alto, Calif.-based Trident Capital and Downtown-based Draper Triangle Ventures to boost its national sales team and fuel research and development.

But Mr. Zini also rejected other potential investors offering even more funds. "I could've raised more but didn't need to," he said, explaining that he did not want to dilute the holdings of investors who have backed the company since its start in 2001.

What is attracting investors is Aethon's Tug robot, a suitcase-sized machine saddled with a cart on top that traverses hospitals delivering meals, medicines and supplies to patients and doctors. The robot helps save hospitals time and money and is promising to do even more.

Mr. Zini and his team of nearly 50 will use the new funds to assign Tug with additional tasks, such as using radio frequency identification technology to help hospitals keep track of critical supplies, such as wheelchairs and intravenous pumps.

"It's a huge problem and very costly," Mr. Zini said. "Hospitals don't want nurses and other clinicians doing that type of work -- the more you can help them do these kinds of tasks, the better."

Aethon has attracted 22 customers since its founding in 2001, including the West Penn Allegheny Health System, which is leasing at least two Tugs for each of its five hospitals, Mr. Zini said.

With the latest infusion of capital, Mr. Zini will try to persuade hospitals in several major metropolitan areas, including the major health centers of Dallas and Atlanta, of Tug's utility.

To do that, Aethon will hire up to 14 more salespeople by early next year, Mr. Zini said, and plans to boost its overall staff to 100 by 2007. "A lot of that will be here in Pittsburgh," he added.

Mr. Zini was a co-founder of 1990s local tech star Automated Healthcare Inc., which develop a robotic dispensing system for hospital pharmacies and was sold to San Francisco-based McKesson Automation in 1996.

A significant number of people who used to be at Automated now work for Aethon, said Aethon's board chairman, Sean McDonald, who co-founded Automated with Mr. Zini.

"We were very impressed with the past track record of the team, and they are solving a serious pain point for hospitals," said Michael Biggee, a senior associate at the Trident Capital venture firm.

Working with Trident was critical, Mr. Zini said, because of its expertise in the robotics industry. Trident guided Burlington, Mass.-based iRobot to its initial public offering this month.

But Aethon insiders insist they are not ready to talk about an acquisition or initial public offering. They claim an exit for investors seeking to cash in on their investment is at least three years away.

First published on November 18, 2005 at 12:00 am
Corilyn Shropshire can be reached at cshropshire@post-gazette.com or 412-263-1413.
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