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Biotech venture gets further funding

Article Date:  Jul 06 2007

Technology commercialisation group Imperial Innovations and the regional venture capital fund for London, The Capital Fund, have invested £250,000 each in a company which has developed a new way of testing how the liver responds to drugs. This is the second round of funding for NanoBioDesign, a spin-out from Imperial College London.

The company claims that their technology will improve both the speed and accuracy of drug tests on liver enzymes, potentially reducing the costs associated with drug discovery.

Imperial Innovations first backed NanoBioDesign in July 2005, along with NPI Ventures. A total of £720,000 was raised in this initial round of funding, which enabled the biotech company to develop its testing tool based on electrochemical detection. The company will use the money raised this year to develop its technology for large-scale commercialisation, according to co-founder and chief executive of NanoBioDesign, Dr Steve Collins.

Ian Cameron, investment director at The Capital Fund, says: ‘The main causes of drug failures are safety [issues] and lack of effectiveness. NanoBioDesign’s disruptive technology has the potential to reduce both of these problems by creating a greatly improved test for drug toxicity and drug-drug interaction.’

Imperial Innovations was founded in 1986 and listed on AIM in July last year, raising £26 million. The company is based at Imperial College London and has equity holdings in 70 technology businesses, including four now quoted on AIM.

Managed by YFM Venture Finance, The Capital Fund has £50 million to invest in small and medium-sized enterprises in Greater London. Initial investments are limited to £250,000.

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