Rheonix, one of the largest holdings in venture capital firm Rand Capital Corporation, has completed a USD28.6 million Series B equity raise.
Rand co-led the offering with Cayuga Venture Fund, which is based in Ithaca, New York. Cayuga Venture Fund focuses its investments in start-up technology companies, many with a connection to Cornell University. Rand also partnered with past co-investors, including Advantage Capital Partners and Gefinor Capital, to complete this equity offering. Earlier in 2015, Rand had provided convertible bridge financing to support Rheonix during the fundraising process, and its USD680,000 bridge notes were converted to equity upon completion of the Series B offering.
Rheonix develops fully automated microfluidic-based molecular assays. Most recently, Rheonix was granted a patent for the Rheonix CARD cartridge, which enables assays to be performed on the company's Rheonix Card and Encompass family of products. The fully enclosed Rheonix CARD cartridge makes molecular testing simpler and easier to perform and at a fraction of the cost of other options while also eliminating the potential for contamination, reducing user error, and streamlining workflow.
Rand has invested a total of USD2.8 million in Rheonix since 2009, representing one of Rand's five largest holdings at 8.9% of its net assets as of 30 June, 2015.
Allen F (Pete) Grum, President and Chief Executive Officer of Rand Capital, says: "Rheonix is at the forefront of developing molecular testing tools that are easier to use, more economical and less vulnerable to errors, compared with traditional products. Their recent patent award adds to our confidence that their suite of products is superior to other tools in the market and that Rheonix is in an excellent position to penetrate key market sectors, including research, healthcare and food safety testing."
