By Allan Maurer
UPDATED RESEARCH TRIANGLE PARK, NC – Kryosphere Inc., an independent biorepository that stores biological samples for pharma, biotech and biomanufacturing firms, says it has escaped the “terrible twos” with a $400,000 second angel round of funding after two years of doing business.
A filing with the U.S. Securities and Exchange Commission in September shows that it initially targeted the current round at $750,000. It closed on the $400,000 in September.
Eric Hallman, CEO of Kryosphere, tells TechJournal South, the company originally targeted $750,000 but landed some new customers and did not need as much money.
“It was a flat round. Although we had added a lot of value, we decided that in this climate, we needed to get it done,” he says.
“This is a significant accomplishment. From what we hear around the Triangle, we may be one of two or three companies that have closed an angel-backed round this entire year,” says Hallman.
“Closing this Series B round demonstrates that our investors recognize the same potential we see– a growing demand for biorepository services here in the RTP and beyond this region. Now that we have proved the model works, this investment allows us to realize our potential and really grow the business.”
The company, founded in 2007, says that it has also passed a milestone of having stored over 2 million biosamples. It raised $1 million in angel backing in March 2008. The current round included at least 15 investors, according to the SEC filing.
The company provides provides expert GLP/GMP storage of biological samples, cold-chain-of-custody logistical support, and the management of clinical trial samples.
Hallman says that the need for the company’s service is clear from the fact that there are about 10,000 biorepository freezers in the RTP area now, many at the three top research universities and others at companies.
Kryosphere stores the samples at ambient to supercold liquid nitrogen temperatures and the ultracold technology requires expertise. “Some people think it’s simple,” says Hallman. “It’s not. You can’t just throw something in the freezer with liquid nitrogen.”
Using our services allows our clients to concentrate on their core business,”says Neil Jones, Kryosphere’s vice president of Scientific Operations.
Hallman says the eight-employee company currently has about 150 freezers in a 10,000 square foot facility with access to another 10,000 square feet, although that could fill quickly as the company continues acquiring new business. It has a capacity to store about 12 million samples.
The current round is focused on just that, closing deals in the pipeline, says Hallman, who adds that the company is targeted to break even by the second quarter of next year.
It may seek additional funding to expand, but will more likely seek a strategic funding deal or further angel money of around $1 million rather than a larger venture capital infusion, Hallman says.
Online: www.kryosphere.com
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