Good day. With genomics research accelerating, venture capitalists have provided $20 million in fresh capital to Genomenon Inc., a startup that aims to help doctors and drugmakers fully capitalize on the expanding volume of genomics data. 

The falling cost of DNA sequencing has spurred more research that links gene variants to diseases. That information can help doctors looking to diagnose a disease and drug companies seeking to better understand and treat a disorder.

But searching for all relevant genomic studies can be time-consuming, because different researchers studying the same genetic variation often describe it differently, said Mike Klein, chief executive of Ann Arbor, Mich.-based Genomenon. One may describe it in terms of its effect on a protein, while another may refer to that variation by its location on a chromosome, he said.

Genomenon, using artificial intelligence, has created a search engine that scans genomics research and quickly pulls together relevant information, according to Mr. Klein.

Genomenon, spun out of the University of Michigan in 2014, says more than 1,000 genetic-testing labs and hospitals use its search engine. The company also provides genomics data to drug companies. With this Series B financing, led by Beringea and Spring Mountain Capital, Genomenon has funds to expand its roster of customers.

And now on to the news...

Hunt for IP. Increasing venture-capital investment in gene-editing technology is fueling a rush to secure intellectual property in a sector that promises to spur advances across several areas of biotechnology. 

• Technology known as Crispr enables researchers to make precise changes, or edits, to the genetic code, which could lead to therapies for genetic diseases, cancer and other conditions. Because of its broad commercial potential, the gene-editing technology has been surrounded by intellectual-property disputes.
   
• Several Crispr-based startups raising venture capital recently are using new enzymes to enable novel applications for gene editing, avoid existing patents, and generate new intellectual property.

Bitcoin’s price rose after President Biden announced an executive order to study digital currencies, a move the industry welcomed and skeptics decried as delaying needed regulation, The Wall Street Journal reports. The order, titled “Ensuring Responsible Development of Digital Assets,” directed agencies across the federal government to produce reports on digital currencies and consider new regulations. It outlined the risks cryptocurrencies pose to the economy, national security and climate, while also noting their possible benefits.

Funds

S3 Ventures raised $250 million for its seventh fund to continue investing in Texas-based startups focused on business technology, digital experiences and healthcare technology. The Austin-based firm makes initial investments from $500,000 to $10 million in seed, Series A or Series B rounds with the capacity to invest more than $20 million throughout the life of a company.

Paris- and Munich-based Kurma Partners has raised €160 million (about $177 million) toward its first Growth Opportunities fund. The new vehicle, which has a target of €250 million, will invest in about 15 European healthcare companies. The firm recently added Jean-François Rivassou and Daniel Parera as partners.

People

Genetic medicine startup Scribe Therapeutics Inc. appointed David Parrot as chief financial officer and George Manning as controller. Mr. Parrot was previously a managing director at Barclays. Mr. Manning was most recently senior director and assistant controller at Allogene Therapeutics. Alameda, Calif.-based Scribe Therapeutics counts Andreessen Horowitz, OrbiMed Advisors, RA Capital Management and Menlo Ventures as investors.

Health benefits provider Collective Health added Ari Hoffman as chief clinical officer and vice president of population health, and Jennifer Danielson as chief growth officer. Mr. Hoffman was previously an associate professor of clinical medicine at the University of California San Francisco. Ms. Danielson was formerly at Cambia Health Solutions and Regence BlueCross Blue Shield of Utah. Last May, San Francisco-based Collective Health said it raised a $280 million Series F round from Health Care Service Corp., DFJ Growth, Founders Fund, G Squared, Maverick Ventures, New Enterprise Associates, SoftBank Vision Fund 1 and others.

CODA Biotherapeutics Inc. appointed Susan Catalano as chief scientific officer. She joins the company from Cognition Therapeutics. South San Francisco, Calif.-based CODA Biotherapeutics is backed by investors including Versant Ventures, Astellas Venture Management and MPM Capital.

Strateos Inc., a developer of remote access laboratories and lab control software for life science research, said DCVC Partner Jason Pontin was appointed chairman of the board. Menlo Park, Calif.-based Strateos raised just over $56 million in Series B funding led by DCVC and Lux Capital last year.

Exits

OCA Ventures- and Lunsford Capital-backed SentryHealth merged with Panoramic Ventures-backed Wellview to provide a connected employee healthcare platform.

C2Dx, a medical device company backed by Plymouth Growth, acquired Hemostatix Medical Technologies LLC and its thermal scalpel system. Terms weren’t disclosed.

DNAnexus Inc., a  Mountain View, Calif.-based biomedical data analysis software provider, scored a $200 million investment. Led by funds managed by Blackstone Growth, the round included participation from Northpond Ventures, GV, Perceptive Advisors, Innovatus Capital Partners and Foresite Capital.

Sherlock Biosciences Inc., a Boston-based diagnostics startup, raised $80 million in Series B funding led by Novalis LifeSciences. New investors including Illumina Ventures, Albany Capital and Catalio Capital Management also participated in the round, along with existing backers Northpond Ventures, Good Ventures and others. Paul Meister, partner at Novalis LifeSciences, will join the company’s board.

Gravie, a Minneapolis-based health benefits provider, secured $75 million in Series E financing. Georgian led the round, which saw participation from existing investors FirstMark Capital, AXA Venture Partners, Split Rock Partners and Revelation Partners.

Microbiotica Ltd., a U.K. developer of microbiome-based therapeutics and biomarkers, completed a £50 million ($67 million) Series B round co-led by Flerie Invest and Tencent Holdings. New investor British Patient Capital also contributed to the funding, alongside previous backers Cambridge Innovation Capital, IP Group and Seventure Partners.

Colossal Biosciences, a Dallas-based genetic engineering startup, grabbed $60 million in an oversubscribed Series A round. Co-lead investors Thomas Tull and At One Ventures were joined by Animoca Brands, Breyer Capital, Animal Capital, Bold Capital, First Light Capital Group, Boost VC, Jazz Ventures, Builders VC, Green Sands Equity, Draper Associates and others in the funding.

Health Gorilla, a Palo Alto, Calif.-based health information exchange provider, landed $50 million in Series C funding. SignalFire led the investment, which included contributions from Epsilon, IA Capital and Nationwide Ventures.

Creyon Bio Inc., a San Diego-based drug development startup, launched with $40 million in seed and Series A funding led by DCVC Bio and Lux Capital. Other investors include Casdin Capital, Alexandria Venture Investments and BioBrit.

Osteal Therapeutics Inc., a Dallas-based startup developing novel musculoskeletal therapeutics to treat orthopedic infections, closed an oversubscribed $30 million Series B round. HM Capital led the funding, which saw participation from Johnson and Johnson Development Corp. and Medvest Capital. Robert Luo of HM Capital and Judson Cooper of Prism Ventures joined the board.

TRexBio Inc., a South San Francisco, Calif.-based startup working on treatments for immune-mediated diseases, added $26 million in Series A funding to close the round at $85 million. Polaris Partners led the new tranche, which included participation from Laurion Capital, SV Health Investors, Eli Lilly & Co., Johnson & Johnson Innovation – JJDC Inc., Pfizer Ventures and Alexandria Venture Investments. Alexandra Cantley, a partner at Polaris Partners, will join the board.

Wildflower Health, a San Francisco-based women's health startup, picked up a $26 million investment. TT Capital Partners led the round, with Chief Executive and Partner Dawn Owens joining the company’s board. Additional investors in the round included Providence Ventures, Health Enterprise Partners, Hatteras Venture Partners and Echo Health Ventures.

Homeward, a San Francisco-based startup focused on improving access to primary and specialty care in rural communities, launched with a $20 million investment led by General Catalyst.

Jio Health, a Vietnam-based healthcare services provider, raised a $20 million Series B round. Led by Heritas Capital, the investment included support from Fuchsia Venture Capital, Kasikorn Bank Group and Monk’s Hill Ventures.

• Lighter Covid-19 caseload brings little relief to one New York hospital
   
• Pfizer starts testing its Covid-19 pill in children
   
• Block on blood-plasma donors from Mexico threatens supplies
   
• Veterans Affairs facilities suffer glitch linked to electronic-health records system

• Staying human in the age of artificial intelligence (Life Sci VC)
   
• Covid may cause changes in the brain, new study finds (New York Times)
   
• Nurses, more powerful and visible after Covid, capitalize on new clout in Washington (STAT News)
   
• AbbVie holds off Humira challenger with Alvotech deal (BioPharma Dive)

This newsletter was compiled by Brian Gormley, Matthew Strozier and Zachary Cole.

WSJ Pro Venture Capital is a premium service of The Wall Street Journal. We cover venture capital and the global startup ecosystem. Share your tips, comments and questions: vcnews@wsj.com

The Team: Matthew Strozier, Yuliya Chernova, Brian Gormley and Marc Vartabedian.

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