NanoDetection Technology, the Cincinnati-based in vitro diagnostic test platform system developer, has secured a $2.3 million from a group of 21 investors. The Series A round was oversubscribed. CincyTech led the round with a $400,000 commitment.
NanoDetection Technology Closes Funding Round
Strong demand results in oversubscription
CINCINNATI (July 29, 2011) – NanoDetection Technology CEO Joel Ivers and CincyTech announced today that NDT has closed its Series A funding round at $2.3 million with 21 investors.
The company had set a $2 million goal for the round of financing, but investor interest was so strong it decided to take an additional $300,000, said Ivers.
CincyTech led the round with a $400,000 investment and brought half a dozen investors into the deal. Southern Ohio Creates Companies invested $100,000, and 19 individual investors put in the rest.
“We were thrilled by the number of individuals who saw the potential for our technology, especially local investors,” said Ivers. “The seven-month effort was especially impressive given the tough fund-raising climate. In fact, after the extension of the funding round, we turned away additional money.”
NDT has decided to focus initially on marketing a low-cost point-of-care diagnostic system to hospitals and physicians’ offices, with a first target on the detection of MRSA (Methicillin-resistant Staphylococcus aureus) in skin and soft tissues. The company believes this investment round will fund efforts for its clinical trials and for it to complete a Food and Drug Administration clearance of its new test. NDT expects its initial U.S. MRSA-targeted sales early in 2013.
CincyTech recruited NanoDetection Technology to the Cincinnati area last fall from Knoxville, Tenn., where physician Charles Barnett developed a way to detect and identify pathogens much more quickly than existing technologies – within minutes vs. days. Local health care executive Joel Ivers was brought in to run the company in Cincinnati and has since hired two research scientists. The company moved to the Tech-Way Office Park in Franklin, Ohio, in March, and Tech-Way Industries will be producing the plastic parts for the devices and assembling the final product.
Ivers has worked in biomedical fields in Greater Cincinnati and Northern Kentucky for more than 30 years, most recently serving as president of Union Springs Pharmaceuticals, where he led product development as well as worldwide sales and marketing for MyClyns® personal-protection spray.
Ivers also was CEO of Hill Top Research and worked in various hospital and health-care marketing roles from 1979-2001. He has a master’s in genetics and molecular biology from Indiana University Bloomington and a bachelor’s in chemistry from The University of Redlands (Redlands, California).
About NanoDetection Technology: NanoDetection Technology has developed a novel, rapid and cost-effective point-of-care in vitro diagnostic test platform system for potentially lethal pathogens, DNA and biomarkers that give it a broad market appeal. These pathogens include those found in healthcare settings (e.g., MRSA, UTI bacteria, etc.), the food chain (e.g., E. coli, Salmonella, and Listeria), and those used in bioterrorism (e.g., anthrax, ricin, etc.) It is based at Tech-Way Office Park in Franklin, Ohio.
CincyTech is a public-private venture development organization that invests in startup businesses in high-tech industries in Southwest Ohio. With substantial support from Ohio Third Frontier and corporations, foundations, civic organizations and individuals here, it is stimulating the growth of venture-worthy companies in information technology, bioscience and advanced manufacturing.