Healthcare Industry News:  Genomic Health 

Biopharmaceuticals Venture Capital

 News Release - July 8, 2009

Rapid Micro Biosystems Closes $18.6M Series A Financing

BEDFORD, Mass.--(HSMN NewsFeed)--Rapid Micro Biosystems, Inc., a company developing innovative products for faster detection of microbial contamination, today announced that it has successfully raised $18.6 million in venture financing. Investors in the Series A round include Kleiner Perkins Caufield & Byers, TVM Capital, Quaker BioVentures, and VIMAC Milestone Medica Fund (VMM). Rapid Micro Biosystems will use the financing to expand its market presence and current product portfolio.

“We are very proud to have leaders in the venture investment community recognize the potential for Rapid Micro Biosystems’ commercial future,” says Steve Delity, President and CEO of Rapid Micro Biosystems. “Large pharma, biologics, and personal care product manufacturers have been searching for a faster, more effective solution for quality control which meets their strict regulatory compliance requirements. Our Company will change the way microbial testing is performed by replacing old art with 21st century technology. We look forward to helping the biopharmaceutical and personal care industries improve quality, safety and costs in their product supply chains by expanding our product offering and growing our presence in the U.S., Europe, and ultimately worldwide.”

“Rapid Micro Biosystems delivers unmatched value to its customers through rapid microbial contamination testing and has the opportunity to capitalize on a significant unmet need in the marketplace,” says Dr. Thomas P. Monath, Partner, Kleiner Perkins Caufield & Byers. “The combination of a unique, high-throughput technology addressing a large market demand, and an outstanding management team with a proven track record, create a recipe for commercial success.”

The Growth Direct(TM) System, the lead product of Rapid Micro Biosystems, greatly reduces microbial contamination testing time by using proprietary digital imaging technology to replace detection by the human eye. The system delivers high throughput analysis with its proprietary consumable Growth Cassettes(TM) and automates otherwise error-prone manual steps. The resulting time savings and quality improvements reduce product loss, inventory carrying costs, plant shut-downs, and labor, while contributing to significant cost savings and better manufacturing margins. The Growth Direct System was commercialized in 2008 and is currently available in the United States and Europe, where units have been sold to major pharmaceutical companies.

As part of the agreement, Monath of Kleiner Perkins Caufield & Byers; Dr. Jens W. Eckstein, General Partner at TVM Capital; and Richard Kollender, Partner at Quaker BioVentures, will join the Company’s Board of Directors, along with Delity and Don Straus, the Company’s founder and inventor of the technology. Ferghana Partners acted as the financial advisor to Rapid Micro Biosystems during this transaction.

About Rapid Micro Biosystems

Rapid Micro Biosystems, a venture-backed company headquartered in Bedford, Massachusetts, provides innovative products for faster detection of microbial contamination in the manufacture of pharmaceutical, biotechnology, and personal care products. The Company’s Growth Direct(TM) System, commercialized in 2008, detects contamination earlier, delivering compelling economic benefits to manufacturers while improving their quality process. The Growth Direct(TM) System is the first and only automated system that accelerates testing, fits with current regulatory practices, and addresses all key applications. For more information, visit www.rapidmicrobio.com.

About Kleiner Perkins Caufield & Byers

Since its founding in 1972, Kleiner Perkins Caufield & Byers has backed entrepreneurs in over 500 ventures, including AOL, Amazon.com, Citrix, Compaq Computer, Electronic Arts, Genentech, Genomic Health, Google, Intuit, Juniper Networks, Netscape, Lotus, Sun Microsystems, Symantec, Verisign and Xilinx. KPCB portfolio companies employ more than 250,000 people. More than 150 of the firm’s portfolio companies have gone public. Many other ventures have achieved success through mergers and acquisitions. The firm has offices in Menlo Park, California; Beijing, China; and Shanghai, China. For additional information visit, www.kpcb.com

TVM Capital and the TVM Capital Life Sciences Practice

TVM Capital is an international venture capital and private equity firm with a 25 year operating track record in the European and U.S. markets. The investment focus of TVM Capital on financing technology and life sciences companies has led to specialized, focused teams and dedicated funds to serve the target markets best. TVM Capital is Private Equity International’s “German Private Equity Firm of the Year 2008”.

The TVM Capital Life Sciences Practice with 820 million Euros ($1.26B USD) under management is one of the largest venture and growth investors in biotechnology and pharmaceuticals in Europe and the United States. The Life Sciences team builds on the expertise, experience, international approach and demonstrated success in more than 110 previous investments and almost 40 IPOs from our biotechnology and pharmaceutical portfolio of companies. The team combines long-standing international investment experience with pharmaceutical and biotechnology operating track records, and extensive networks and knowledge regarding science, product discovery and development, manufacturing, marketing and distribution, international commercialization and finance. Twenty years of successful investing and value creation, in traditional early and late-stage venture as well as venture growth and growth capital, make the TVM Capital Life Science Practice a unique partner in the healthcare industry. Founded in 1983, TVM Capital is headquartered in Munich with offices in Boston and Dubai.

Find more information: www.tvm-capital.com.

About Quaker BioVentures

Quaker BioVentures is a venture capital firm with $700 million under management, dedicated to investing in life science companies in the Mid-Atlantic region and contiguous states. The firm leads investments in companies across the spectrum of the life science industry, including biopharmaceuticals, medical devices, human diagnostics, specialty pharmaceuticals, and healthcare services. Quaker BioVentures invests in companies at all stages of development, from early stage businesses to public companies. Please visit Quaker BioVentures’ website at www.quakerbio.com.

About VIMAC Milestone Medica Fund

The VIMAC Milestone Medica Fund (VMM) is a life sciences venture capital fund providing equity financing to entrepreneurial companies. Boston-based VMM invests in early stage companies in Eastern US and Canada, providing support and capital throughout the development stage as a company progresses from an entrepreneurial enterprise to an established entity. Please visit www.vimac.com.


Source: Rapid Micro Biosystems

Issuer of this News Release is solely responsible for its content.
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