EpiStem, a biotech spin-out from the Paterson Institute for Cancer Research, has raised £3 million (€4.4 million, $5.9 million) from an initial public offering on London’s alternative investment market.
EpiStem has sold 2.5 million shares at 124 pence each through the AIM listing, which will represent about 38 percent of the total share capital. The total proceeds will be about £2.6 million after fees, which it will use to fund further research into new therapies and also a new diagnostic platform based on DNA technology.
The fundraising is unusual in that it sees business angels teaming up with venture capital to back the company.
Beer & Partners, the UK’s largest business angel network, has contributed £425,000 of the total, while other investors include London-based venture capital firms Calculus Capital and Zeus Capital, asset management firms New Star and Octopus, the University of Manchester, and Jon Moulton, the founder of London-based mid-market firm Alchemy Partners.
Established in 1995, Beer & Partners backs about 150 companies seeking funding in the £25,000 to £5 million bracket each year. Following the untimely death of its founder and chairman David Beer in December, it appointed Michael Weaver as chief executive and Robert Iggulden as chairman.