NEW YORK, Aug. 8 – Bioinformatics incubator LaunchCyte said Wednesday it has closed on $700,000 of interim financing from a small number of individuals.
The funds, which bring Pittsburgh-based LaunchCyte’s total capitalization to $2.7 million, were raised in a convertible debt offering that will convert to equity upon the closing of LaunchCyte's next funding round, expected to take place by the fall.
Tom Petzinger, CEO of LaunchCyte, said that the current funding environment "is very challenging, particularly for small, early-stage opportunities, and the fact that we enlisted the high quality of individual investor that we did in this round validates that we’re in the right space, we’ve got the right team, and we’re in the right geographical location to do this work.”
Petzinger said that LaunchCyte has earmarked $500,000 of the new capital to accelerate the commercialization of its first portfolio company, Morewood Molecular Sciences, which is developing microarray technology for assaying enzymatic activity.
Morewood also received $100,000 at the end of July from the InnovationWorks program, a regional development company that supports early-stage technology companies in the Pittsburgh area.
Petzinger said the remainder of the new interim funds would be devoted to LaunchCyte’s working capital.