A Durham company that develops technology to support research into cell biology has closed on a $6.5 million raise.
Cell Microsystems raised the financing from existing investor Telegraph Hill Partners, a California-based venture capital firm with a team in the Triangle. Cell Microsystems, which spun out of UNC-Chapel Hill, is looking to raise an additional $6.5 million by focusing on its existing shareholder base.
The financing supported the company's recent acquisition of California-based Fluxion Biosciences. Through the deal, announced on Aug. 23, Cell Microsystems is able to expand its portfolio of cell analysis products and services.
Financial terms of the Fluxion deal were not released.
"Fluxion came to our attention as a company that offers instruments and services that are capable with our growth," said CEO Gary Pace.
With this additional funding, Pace said the company plans to continue building out its team, expanding its commercial activity and implementing its product development roadmap. He's aiming for the company to reach or exceed $10 million in revenue by the end of next year.
"First and foremost (our goal) is driving top line revenue," Pace said. "One of the other goals is to see our products and technology widely used to support research."
Cell Microsystems develops products that are used by researchers in areas like CRISPR gene editing in academia and at pharmaceutical and biotechnology companies, with the latter making up about two-thirds of the Durham firm's business. This is an area the company has grown into after initially focusing on academic settings when it began selling products in late 2018.
The company's acquisition of Fluxion raises its headcount to 37 employees, a number that's likely to reach around 48 over the next year to 18 months, Pace said.
The deal also gives Cell Microsystems a footprint on the West Coast, near companies and researchers in biotech hubs in San Diego, San Francisco and Seattle. In addition to the growth out west, Cell Microsystems is in the process of expanding its footprint at its Durham office on Capitola Drive from about 10,000 square feet to 14,000 square feet.
This latest round of financing will support Cell Microsystems' investments into its product lines and expanding its commercial team. While focused on North America, the company last year entered an agreement with a distributor to cover certain countries in Europe. The company plans to further grow this commercial footprint into the United Kingdom and counties in the Asia-Pacific.
This funding round follows Cell Microsystems' previous raise of $10 million in late 2021. Telegraph Hill Partners was also lead investor of that round.
