Diabetes treatment developer Fractyl has raised $40 million in Series C funding led by Mithril Capital Management. Proceeds from the round will be used to help fund clinical trials of a Fractyl-developed procedure called the Revita Duodenal Mucosal Resurfacing. Reportedly the procedure can delay the need for insulin injections in type 2 diabetes patients. Fractyl has now raised about $60 million in VC, including its initial $5.5 million Series A round raised at a valuation of $11 million in 2011. All existing investors also participated in the new funding.