| BALTIMORE, MD Mon, Oct 27, 2008 Governor Martin O’Malley today announced that five growing Maryland technology and life sciences companies, all of which previously received Maryland venture funding, have been awarded an additional $350,000 to assist with the development, sales and marketing of a number of cutting-edge tech, medical and disease detection products. The additional round of funding, through the Maryland Department of Business and Economic Development’s Challenge and Enterprise Investment Funds, will go to two Rockville-based companies, Neodiagnostix and Aguru Images; Baltimore-based Encore Path Inc.; Clarksville-based Neuronascent Inc.; and Gaithersburg-based Sirnaomics Inc.
“Investing in emerging tech and life sciences companies is one of the ways we are growing Maryland’s nationally recognized biotechnology industry,” said Governor O’Malley who, in June, unveiled a 10-year, $1.3 billion dollar investment in Maryland's bioscience infrastructure. “Strategic investments in these two industries will ensure that Maryland is well positioned for tomorrow’s economy.”
“This funding from DBED has not only enabled Encore Path to hire a part-time CFO and VP of sales, but the prestige associated with being supported by DBED attracted other investors to the company,” said Kris Appel, President & CEO of Encore Path, Inc.
“This funding affords us the opportunity to pursue multiple preclinical studies to further develop our lead agents for clinical trial,” said Judith Kelleher-Andersson, Ph.D., President and Chief Scientific Officer of Neuronascent, Inc.
Neodiagnostix, which develops novel molecular diagnostic and prognostic tests for the treatment of cancer, has received a $150,000 investment. The company previously received $250,000 from DBED in a series of smaller investments made between 2005 and 2007. The funds will help the company increase its sales and also boost its profile in the venture community.
Aguru Images, an innovative technology firm that develops and sells high-resolution commercial digital imaging hardware and software for use with animation, special effects, computer gaming and design, has received a $50,000 investment. The company, which moved to Maryland from Virginia earlier this year and received a $100,000 investment, will use the funds to expand sales and marketing activities.
Encore Path Inc., which helps stroke survivors by developing and selling technologies, devices and therapies to make rehabilitation faster, safer and less expensive, has received a $50,000 investment. The company, which received a $50,000 investment last year, will use the additional funds to help market its exclusive arm training device specially designed to improve motor function in patients with chronic stroke.
Neuronascent, Inc., a small-molecule drug discovery company developing novel therapeutics based on the science of neurogenesis, received a $50,000 investment. The company, which also has a lab in Walkersville and received a $50,000 investment last year, will use the funds to help further their research with Alzheimer's disease, depression and ischemia.
Sirnaomics, Inc. is a biopharmaceutical company working to advance RNAi technology for novel drug discovery and the treatment of various critical human diseases. The company will receive $50,000 in funds, adding to a $50,000 investment the Department made earlier this year.
DBED’s Challenge and Enterprise Investment Funds have an established a track record of investing in some of the most promising technologies that the state has to offer. Combined, the fund has invested more than $45 million since 1994 in close to 200 companies.
The Challenge Investment Fund provides financing for small start-up technology companies to cover a portion of the initial costs associated with bringing new products to market. Companies are required to provide matching funds to be eligible for the State funding. Since its inception in 1988, the Challenge Investment Program has provided more than 100 emerging technology companies with initial financing support for the commercialization of new technology-driven products. To be eligible, a company must have no more than 25 employees and annual sales revenues of $1 million or less. Companies that meet agreed-upon milestones may receive up to $150,000 in assistance from the Challenge Investment Program.
The Enterprise Investment Fund makes direct equity investments in emerging technology companies, usually at the first round of institutional financing. The Enterprise Investment Fund works with emerging companies to move them into their next stage of development as a viable business. The amount of investment ranges from $150,000 to $500,000. Enterprise investments are generally in the form of equity, but follow the terms of the lead investor.
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