Developing a first-of-its-kind product puts a company in a class of risk that few U.S. public investors or venture capitalists are prepared to bear these days. But Lexington, Mass.-headquartered GI Dynamics Inc., which is developing EndoBarrier as the first endoscopic device treatment for diabetes, was fortunate enough to be able to call on a group of international investors. In July, the company raised 57.5 million Australian dollars ($53.2 million) from undisclosed investors in countries including Australia, Hong Kong, Singapore, the U.K. and the U.S. [See Deal].
Previously, GI Dynamics raised $AU80 million when it went public on the Australian stock exchange in August 2011. The funds...