A year ago Capital Genomix Inc. raised $1 million in venture capital and was featured in Deal of the Week. Here is an update on the company:
Bill Hearl, chief executive of Capital Genomix, has an easy answer to his company's accomplishments in the past 12 months.
"The biggest news is survival," he said. "It's been a pretty tough year for biotech."
After raising $1 million last year, the company collected an extra $400,000 during 2001, although Hearl said that even with the additional financing, times were lean. But then in November, Capital Genomix bought instrument maker Dynex Technologies Inc., a subsidiary of Thermo Electron Corp. Dynex had nearly 50 employees and $9.8 million in annual revenue when it was bought by Capital Genomix, which had no revenue and just seven employees.
"It was definitely a classic guppy-swallowing-a-whale kind of thing," Hearl said.
Capital Genomix raised an undisclosed amount of financing for that acquisition and has used Dynex's considerable cash flow to help fund operations. Hearl also hopes to raise an additional $5 million in the first half of this year and says that interest for the round of funding has been high.
"We've got an incredible response rate," he said.
-- Nicholas Johnston