KIYATEC Announces Initial Close on Series A Funding Round
May 23, 2012 – KIYATEC Inc. today announced the initial close of its Series A funding round. The financing was led by institutional investor Nexus Medical and Technology Capital (Greenville, SC and Quincy, MA) and Greenville, SC based Upstate Carolina Angel Network, and included additional private investors. Contingent with this close, SC Launch and other debt investors now have equity positions in the company. Proceeds from the initial financing will be used to advance two 3D cell-based assays for more predictive evaluation of cancer efficacy and certain kinds of liver toxicity for drug and biologic candidates.
"Pharmaceutical and biotech companies will soon benefit from KIYATEC’s ability to incorporate perfusion and segregated co-culture into in vitro models, and the resulting increase in sensitivity and predictive capability." said Matt Gevaert, the company’s CEO. "The ability to detect a compound that would otherwise fail in clinical trials, before it is used in humans or tested in animals, yields huge benefits. Patients and doctors can focus more precious time and energy on future winners, resulting in significant cost reductions for both the industry and our health care system. Data confirms that perfused 3D co-cultures are superior in vitro models – the additional complexity makes them more like our bodies – but prior to our 3DKUBE™ platform, this type of experiment was not convenient or cost effective."
KIYATEC has already brought its 3DKUBE™ to market and is experiencing initial buy-in from the relevant research community. It offers a complete disposable “flow circuit” – all the components necessary for a perfused 3D co-culture experiment – for less than $30. The company’s contract service arm also currently provides cell-based testing services to medical device companies looking for more relevant characterization of cell-material interactions for regulatory applications, quality control or product development. The extension of KIYATEC’s contract services to pharmaceutical and biotech companies for preclinical evaluation of drugs and biologics builds on these existing activities.
“We are excited to invest in the team at KIYATEC,” said Gregory Zaic of Nexus. “We have been following their progress for some time and, based on the company’s achievements, we felt that the time was right. We hope that our financial support and access to Nexus’s relationships in the US and in Europe will contribute to their future success.”
“The SCRA Technology Ventures’ SC Launch program congratulates Matt and the entire team at KIYATEC for their recent investment funding,” said SCRA CEO Bill Mahoney. “Our program has mentored and helped connect the company throughout its early to mid-stage development over the past four years. We are moving forward to convert our investment in KIYATEC into a meaningful equity position. We are delighted to have an ongoing relationship with KIYATEC and look forward to their continued success.”
KIYATEC Inc. is a life sciences company enabling better in vitro models of complex human biology through perfused 3D cell-based assays and enabling products. Its 3DKUBE™ technology platform conveniently and cost effectively incorporates perfusion flow, accommodates all scaffold materials, allows in situ imaging, models complex human biology using segregated cell co-culture, and is a single-use disposable. 3DKUBE cell-based assays leverage these features to create better in vitro prediction of complex biochemical responses in humans, with a focus on evaluation of drug toxicity and efficacy prior to use in human clinical trials.
Discover. Develop. Diagnose.™ KIYATEC 3D Cell Culture Delivers.
About Nexus Medical & Technology Capital (NMT Capital)
Nexus is a leading private equity firm focused on emerging medical companies in North America and Europe. KIYATEC is Nexus’s 11th investment in South Carolina. Other SC-based investments include Lab 21, Zipit Wireless, Spectra Analysis and Sabal Medical. Nexus has offices in Quincy, Massachusetts and Greenville, South Carolina.
About SCRA and SC Launch
SCRA is an applied research corporation with over 29 years of experience delivering technology solutions with high returns on investment to federal and corporate clients. Our flagship SC Launch program, managed by the Technology Ventures sector, helps early-stage companies to commercialize innovations and create jobs. SC Launch has supported 251 entities in South Carolina through investments and other support services. Multiple economic impact studies show SCRA’s cumulative impact on South Carolina’s economy to be over $14 billion.
The Upstate Carolina Angel Network, LLC (UCAN) is a group of accredited investors located in Upstate South Carolina who invest in and support start-up and early-stage, high-growth businesses in the Southeastern United States. Our members possess a broad array of business experiences and skills they bring to bear in helping to screen and evaluate potential portfolio companies. They also serve as a valuable resource for guidance and advice to entrepreneurs and their businesses once an investment is made. Since its inception in 2008, UCAN has invested $5.6 million in 22 companies.