Now the machine, called Artas, is finally making its way into physicians’ offices across the U.S.

The Artas robot works by automating the relatively new procedure of follicular unit extraction, in which individual hair follicles are taken from the back and sides of the head, after which the grafts are then implanted into the area of baldness. A traditional hair transplant would involve more invasive incisions and the manual application of the grafts to a patient’s head. With a robot, some doctors say, the procedure is more precise, and removes the element of human error.

Restoration Robotics and others credit a Denver-based physician, Dr. James Harris, for making many of the advances that lead to the robotic hair-transplant device.

For physicians, the Artas machine involves an initial investment of around $200,000. Staff training sessions, which are led by Restoration Robotics, can take up to five weeks.

For patients, the cost can vary. The fee for the robotic-assisted procedure is usually around $10 a graft. Insurance companies may cover the procedure in the event that it’s reconstructive. Dr. Bernstein says the bulk of his practice is cosmetic cases, but notes that he often won’t charge patients that have hair loss due to trauma, burns or chemotherapy.

The Artas hair-transplant procedure can take up to eight hours. It’s generally done in one session, but a less-intensive follow-up procedure could also be required later on.

Doctors say it’s not dramatically faster than the traditional methods used in hair transplants, but it takes the human-error element out of the procedure. Surgeons can tire during a long procedure, during which thousands of hair follicles are replaced. They may be forced to take breaks and, naturally, are susceptible to error.

Dr. Bernstein also notes that, as is commonly the case with the introduction of automated machinery, having the Artas robotic system in his office means he can complete the same number of procedures, or more, with a leaner staff.

Currently there are four Artas systems in place across the U.S. — one in New York, another in Denver, and two in Los Angeles — and Restoration Robotics CEO Jim McCollum says the company is expecting to sell even more robots in the new year. He believes there’s potential for this to be a game-changing technology and also said there may be a market for Artas that focuses more on female patients, as well.

Restoration Robotics was founded in 2002; in 2007, the company raised $25 million from InterWest Partners, Alloy Ventures and Sutter Hill Ventures. After Artas was cleared by the FDA in April of this year, the company secured $41 million in Series C funding from Clarus Ventures and other early investors, as discussed on The Wall Street Journal’s “Digits” show earlier this year.

In 2009, venture capitalists invested $17.7 billion–37 percent less than in 2008 (see chart below; click to enlarge). And they funneled that money into just 2,795 start-ups–37 percent fewer than the year prior. The sectors where these declines hit hardest: Software, clean tech and biotech.

“The venture capital industry had no choice but to slow the investment pace in 2009,” NVCA president Mark Heesen said in a statement. “The weak exit environment resulting from an unstable public market combined with a challenged limited partner base sent a strong message to the venture community to pull back the reins–and the VC’s listened.”

While the market for VC investments in 2010 is likely to remain tight, the situation is improving. Said Heesen: “Now that the economy has begun to show signs of improvement, we expect to see dollars flow more freely back into those sectors that offered the most promise before the recession began–clean technology, life sciences and IT. The seed and early stage pipeline needs replenishing across all industries and the health of the startup community in the next decade will be dependent upon more robust first-time financings. 2010 should be the year to begin that process in earnest.”

“We’ll be focusing on early stage investments across a diverse range of industries, including consumer Internet, software, clean-tech, bio-tech, health care and, no doubt, other areas we haven’t thought of yet,” Managing Partners Rich Miner and Bill Maris explained in a blog post. “Central to our effort will be our fellow Googlers, whom we view as a critically important resource to help educate us about potential investments areas and evaluate specific companies.”

Presumably, then, the scope of the fund’s investments will be as diverse and, ahem, fascinating as the whims of Google’s leadership. Which isn’t always a good thing. That said, Google Ventures may do much to help the company innovate itself out of this downturn and perhaps even spot and engulf the next Google (GOOG) killer before it has a chance to live up to its namesake. As Google Ventures explains in its FAQ, it’s not above engulfing a company it’s incubated. “Acquisitions by Google of portfolio companies are possible, but this is not the goal or focus of our investment activities. Our focus is building great companies and generating long term financial return.”

Obviously. But for Google, right?

[Image Credit: Ignorance Is Futile!]

“We’ll be focusing on early stage investments across a diverse range of industries, including consumer Internet, software, clean-tech, bio-tech, health care and, no doubt, other areas we haven’t thought of yet,” Managing Partners Rich Miner and Bill Maris explained in a blog post. “Central to our effort will be our fellow Googlers, whom we view as a critically important resource to help educate us about potential investments areas and evaluate specific companies.”

Presumably, then, the scope of the fund’s investments will be as diverse and, ahem, fascinating as the whims of Google’s leadership. Which isn’t always a good thing. That said, Google Ventures may do much to help the company innovate itself out of this downturn and perhaps even spot and engulf the next Google (GOOG) killer before it has a chance to live up to its namesake. As Google Ventures explains in its FAQ, it’s not above engulfing a company it’s incubated. “Acquisitions by Google of portfolio companies are possible, but this is not the goal or focus of our investment activities. Our focus is building great companies and generating long term financial return.”

Obviously. But for Google, right?

[Image Credit: Ignorance Is Futile!]