Galileo Scoops $11M Venture Investment

Chief Executive Guy Miller said he decided to name his life sciences company after Galileo because of the scientist’s “vision for world order, magical view of tradition and ability to see things differently while not being swayed by contemporary paradigms.” Miller hopes Galileo Laboratories Inc. can ultimately convince Wall Street companies that the earth won’t revolve around dotcoms forever.

The Santa Clara, Calif.-based company recently raised $11 million in its second round of venture financing. The Series B round was led by Bay City Capital through its North American Nutrition and Agribusiness Fund. CMEA Ventures also was a first-time investor in the company. Existing investors Alloy Ventures and Brinson Partners returned in the round. The company raised $4.25 million in January 1998.

Galileo develops nutritionals and pharmaceuticals that treat cardiovascular disease. The company has recently developed nutritional products to treat inflammatory response syndrome and aging, as well as products for the performance-sport market.

“When we were looking at how we were going to make money, we knew that Wall Street would give us nothing,” Miller said. “Galileo can generate real revenues, real fast in the area of nutritionals, and make wellness advances in individuals.”

Proceeds from the financing will go toward sales and marketing and research and development.

“We are not focusing on any one product and hurt our chances with other opportunities,” Miller said.

Although Miller said “predicting the public markets is like reading tea leaves”, he said Galileo will likely go public within 18 months. In the interim, the company may engage in a mezzanine round in order to attract additional strategic partners.

“Nutritionals is a discovery engine that has applications in the nearer term,” said Lori Robson, vice president of the Agribusiness Fund. “As individual products become further validated, they can enter into the medical food and medicine areas.”

The Agribusiness Fund is part of a global network of funds led by Gilde Investment Management. Bay City Capital is the fund’s exclusive adviser. The fund held a first close on $125 million in March, and has a target cap of $200 million. It invests between $3 million and $10 million in companies in the nutrition, animal health and bio-remediation industries.

As part of the deal, Bay City Capital Managing Director Roger Salquist has joined Galileo’s board of directors.