Arpeggio Bio Secures $3.2M Seed Funding to Advance Nascent RNA Analysis Platform for Drug Development

VCBeat (WeChat ID: vcbeat) learned from foreign media that on January 15, 2020, U.S. biotechnology company Arpeggio Bio announced the completion of a $3.2 million seed funding round. Investors in this round included Khosla Ventures, FundersClub, Fifty Years, TechU, and YC.

Arpeggio Bio plans to use the funds from this financing round to further develop its nascent RNA analysis technology, providing important new data to enhance drug efficacy.

Arpeggio Bio, founded in 2017 and headquartered in Colorado, USA, is a biotechnology company developing RNA profiling technologies. This technology combines proprietary bioassays with machine learning algorithms to capture rapid, high-resolution snapshots of cells following drug treatment. These snapshots are analyzed to construct biological networks that define drug function and guide therapeutic development. The insights into drug mechanisms and disease pathways provided by this technology support the development of safer and more effective treatments.

Nascent RNA sequencing and eRNA are Arpeggio Bio’s two primary RNA analysis technologies. Nascent RNA sequencing is a relatively new assay method that captures RNA transcripts from actively engaged RNA polymerases, thereby providing direct readouts of genuine transcription. eRNAs represent a novel class of RNA molecules that are highly predictive of cellular and disease states. Furthermore, Arpeggio Bio has developed software for analyzing nascent RNA and integrating RNA data with other data types, enabling the analysis of RNA-seq, ChIP-seq, PRO-seq, and ATAC-seq data.

Since its inception, Arpeggio Bio has established collaborations with more than 20 biotechnology and pharmaceutical companies, including four of the world’s top ten pharmaceutical firms. The company’s early development and market appeal were recognized when it was selected for Y Combinator’s (a renowned U.S. startup incubator that provides funding and professional mentorship to startups) Summer 2019 cohort. Dr. Joey Azofeifa, Founder and CEO of Arpeggio, secured investor interest for this financing round through his presentation at Demo Day.

Dr. Azofeifa said, “We are delighted to have the support of investors. With this funding, we will be able to continue bringing new treatments to patients with epigenetically driven diseases.”

Previously, Arpeggio Bio completed two seed funding rounds: a $150,000 round led by YC on August 19, 2019, and another round on September 11, 2019, with the specific amount undisclosed.

Khosla Ventures, founded in 2004 and headquartered in Menlo Park, United States, is a venture capital firm established by Vinod Khosla, co-founder of Sun Microsystems. The company primarily invests in sectors such as the internet, computing, mobile and silicon technologies, and clean technology.

FundersClub, established in July 2012 and headquartered in California, USA, specializes in seed-stage and early-stage investments. As the world’s first online venture capital platform, it is built around a unique online marketplace that enables accredited investors to become equity holders in custodial venture funds, which then provide funding to pre-screened private companies.

Fifty Years, founded in 2015 and headquartered in California, USA, is a venture capital firm that supports founders in leveraging technology to address the world’s most pressing challenges. The firm provides funding to successful companies, helping them achieve large-scale profitability and advance multiple sustainable development goals.

TechU, established on May 1, 2014, and headquartered in New York, USA, is a venture capital and financial services firm that supports groundbreaking technology companies worldwide.

Y Combinator, founded in April 2005 in California, USA, is a startup incubator that provides services such as funding and business advisory to numerous startups. In 2005, Y Combinator pioneered a new model for startup financing. Twice a year, it invests small amounts of capital in a large cohort of early-stage companies (most recently, 68 companies), with total commitments reaching $1.2 billion. YC partners work closely with each company to help them achieve their optimal potential and refine their investor pitches.

(Compiled by Yang Xiaohui)