StemoniX, a biotech startup using stem cells to create micro-organs for drug testing and development, has raised $14.4 million in a fresh round of funding, the company announced Thursday.
Minneapolis-based Brightstone Venture Capital led StemoniX's round of funding, and was joined by several of the company's initial investors, including San Diego-based Crescent Ridge Partners and SEED San Diego. The Series B round of funding also brought on new investors, including Alumni Ventures, Group Keshif Ventures and Mayo Clinic.
Founded in 2014, Maple Grove-based StemoniX creates functioning "micro-organs" that are used for drug screening and testing. The company currently offers active neural circuits for testing neurological drugs and neurotoxicity research. It also makes beating heart cells for cardiac drug discovery and safety research.
StemoniX won the Minnesota Cup, the state's largest startup competition, in 2016.
It can take more than a decade for some drugs to be approved by the FDA and reach the market. And when it finally becomes available for use, it isn't always safe.
Adverse drug reactions are among the leading causes of death in the United States, according to the FDA. Studies by the FDA estimate that around 7 percent of hospitalized patients experience adverse reactions to medication each year, resulting in more than 100,000 deaths.
StemoniX said in a release that the new financing will allow it to expand commercial operations at its existing sites in Minnesota and California. The company also plans to use the funding to drive the development of new products and services using its stem cell technology
"We are grateful to have the confidence of investors who deeply believe in our vision to enable medicine to work the first time," StemoniX CEO and co-founder Ping Yeh said in a release. "With the Series B funding, StemoniX is poised to open new markets to accelerate drug discovery and development for our customers."
