(Reuters) - Fractyl Laboratories Inc, which is developing a therapy to treat type 2 diabetes, said it has raised $40 million in series C funding led by investment firm Mithril Capital Management.
Mithril Capital is a global investment firm co-founded by Peter Thiel, the billionaire tech mogul who also co-founded PayPal, the online payment service now owned by eBay Inc (EBAY.O).
Fractyl said on Thursday Mithril was joined in the funding by existing investors General Catalyst, Bessemer Venture Partners and Domain Associates.
Fractyl has developed a device-based endoscopic procedure to directly address an intestinal hormonal impairment, which contributes to insulin resistance.
Fractyl also said that its first procedural therapy to directly treat the underlying digestive causes of insulin resistance in patients with uncontrolled type 2 diabetes has yielded positive results.
The company said the funding will be used to support clinical evaluation of the procedure in the United States and Europe.
Reporting by Sarah McBride in San Francisco and Arnab Sen in Bangalore; Editing by Gopakumar Warrier