Kallyope Secures $21 Million Extension to Series B Financing to Advance 'Gut-Brain Axis' Therapeutics

Recently, VCBeat (WeChat Official Account: vcbeat) learned from foreign media reports that leading biotechnology company Kallyope announced the completion of an upsized round of its Series B financing, amounting to $21 million. In February this year, Kallyope completed a $66 million Series B financing round. This brings the total amount raised in the company’s Series B financing to $87 million.

This round of financing was led by Bill Gates, founder of Microsoft Corporation, with participation from all existing investors in Kallyope, including Lux Capital, The Column Group, Polaris Partners, Illumina Ventures, Alexandria Venture Investments, Euclidean Capital, and Two Sigma Ventures.

Kallyope, founded in 2015 and headquartered in New York, USA, is a healthcare company focused on biotechnology, dedicated to identifying therapeutic opportunities involving the central nervous system. Kallyope’s interdisciplinary biotechnology team is integrating cutting-edge technologies—including sequencing, computational biology, neuroimaging, cellular and molecular biology, and human genetics—to advance the understanding of gut-brain biology. Leveraging the company’s deep expertise in drug discovery, the team is committed to delivering translational therapies that improve human health.

Kallyope has developed an industry-leading platform to leverage the gut-brain axis. The gut-brain axis is a bidirectional communication system between the gut and the brain that regulates key aspects of physiology and behavior and is associated with many diseases. Kallyope’s platform enables systematic targeting of gut-brain circuits using small molecules. Currently, the company has initiated multiple projects focused on metabolic disorders, central nervous system conditions, and gastrointestinal diseases. In addition to its internal small-molecule programs, Kallyope recently partnered with Novo Nordisk A/S to develop peptide therapies for the treatment of obesity and diabetes.

Since its inception, Kallyope has raised $131 million in equity capital. In addition to the Series B round, the company also disclosed its Series A financing, which was completed in December 2015 and amounted to $44 million. Upon completion of this round, the company will use the $21 million to further advance its portfolio of programs targeting the gut axis.

“We appreciate Mr. Gates’ support and the renewed commitment from our existing investors, all of whom recognize Kallyope’s value proposition: that a comprehensive understanding of gut circuits will enable us to address significant unmet medical needs in entirely new ways,” said Nancy Thornberry, Chief Executive Officer of Kallyope. “This additional capital injection will allow us to maximize Kallyope’s value and accelerate the advancement of our programs.”

Lux Capital, founded in 2000 and headquartered in New York, USA, is a research-oriented investment firm that focuses on investing in companies within the physical and life sciences sectors. The firm’s investment team has invested in more than 20 companies and is committed to helping its portfolio companies cultivate industry leadership.

The Column Group, founded in 2006 and headquartered in California, USA, is a venture capital firm dedicated to fostering the growth of biotechnology companies.

Polaris Partners, founded in 1996 and headquartered in Massachusetts, USA, boasts over two decades of history and experience collaborating with entrepreneurs and world-class innovators. This multi-billion-dollar venture capital firm primarily invests in outstanding healthcare and technology companies across all stages, from inception to profitable growth, while also maintaining investments in the digital media and enterprise software sectors.

Illumina Ventures, established in 2016, is an independently managed venture capital fund that has formed a strategic partnership with Illumina, a leading company in the analysis of genetic variation and biological function. Illumina provides the majority of its capital, as well as expertise from the world’s leading provider of genomic solutions. Illumina Ventures primarily invests in early-stage companies, with a focus on applications of genomics in life sciences research, healthcare, agriculture and environmental science, public safety, and personal health.

Alexandria Venture Investments is a venture capital firm focused on the healthcare and life sciences sector, primarily investing in growth-stage companies.

Two Sigma Ventures, established in 2012 and headquartered in New York, USA, is an early-stage venture capital fund. It primarily invests in transformative companies that leverage information growth and computational power to change the world, with a commitment to shaping the future through data and computing. By collaborating with its parent company, Two Sigma Investments, the fund provides entrepreneurs with access to expert networks and launch resources, thereby equipping them with competitive advantages.