RoverMed BioSciences Raises Over $1M in its First Funding Round
St. Cloud-based drug delivery startup RoverMed BioSciences LLC has secured over $1 million in its first funding round, chief executive Laura Brod told TCB.
“We initially went out to the market for a $500,000 raise, but over the course of the raise it became clearer that actually raising some additional funds would, one, make more sense and, two, be possible,” she said. “So we essentially oversubscribed [the round] by another $500,000-plus.”
Brod, a former Minnesota House representative, has led RoverMed since its spinoff from GeneSeques Therapeutics in October of last year. (Notably, Brod has also been the CEO of Minnetonka-based GeneSeuques since 2014.)
More than 20 investors contributed to RoverMed’s fundraising effort. Just under half of those investors were from out of state, Brod said, with the greater half coming from individuals or organizations in Minnesota.
Local angel investment firm Gopher Angels led the round. Investments also came in from St. Louis-based Arch Angels and the 701 Angel Fund out of Grand Forks, North Dakota.
RoverMed plans to use some of the new capital to expand its staff.
The startup’s flagship product is an ultra-small drug delivery system developed by GeneSeques, which is known for its developments in the field of RNA and DNA-based therapies.
RoverMed’s system aims to become the top-choice pairing for next-generation medicines being manufactured by pharmaceutical companies. “There are a number of therapeutics being developed by pharmaceutical companies that will never actually impact humans unless they have a precision-targeted delivery technology,” Brod told the Star Tribune last month.
RoverMed claims its product could be used to deliver therapeutics for cancer and other diseases.
One of the key differentiators between RoverMed and its competitors, Brod told the newspaper, was the size of its delivery system. At just 20 nanometers, RoverMed’s technology can be more nimble than other options on the market, the company said, specifically when drugs need to find hard-to-reach cells or parts in a body.