After bootstrapping itself for years, Eagle Genomics has found outside investment dollars for the first time. The Cambridge, U.K., company plans to use £590,000 from investors to fuel growth of its bioinformatics business.
Eagle expects to find additional funds in the coming months and cap off the round with a total of £1 million ($1.56 million), the company said on Monday. The Rainbow Seed Fund of Midven led the first closing, which included seed funds from Abcam CEO Jonathan Milner of Cambridge Angels, London Business Angels, Cambridge Capital Group and others.
With the bioinformatics sector humming, Eagle plans to use the capital from the round to invest in new software called ElasticAP. The software-as-a-service offering is expected to allow users to analyze biological data with cloud computing infrastructure, according to the company. Its customers already include pharma, biotech and other customers, and part of the expansion will target new users in the consumer goods, food safety and animal health sectors.
"This fundraising will be crucial to Eagle's future development," Eagle CEO David Flanders said in a statement. "The company has made remarkable progress in the 5 years since founding and this investment will help in transforming Eagle into a major player in bioinformatics services. With ElasticAP we can significantly increase revenues and at the same time our consultancy business is expanding rapidly."
Investors have warmed up to bioinformatics investments in part because of the tremendous need across several sectors for researchers for tools to manage and analyze biological data from DNA sequencers, assays and other sources. Desktop Genetics is another U.K. company to score support from backers in this field.
- here's the release