Locate Bio pinpoints $660,000 round

Locate Bio, a UK-based regenerative medicine spinout from University of Nottingham, attracted £500,000 ($660,000) in follow-on funding yesterday from commercialisation firm Mercia Technologies.
Mercia Technologies owns a 6% equity stake in Locate Bio following the transaction.
Founded in 2001, Locate Bio has created a stem cell-based drug delivery system called Taos and gene editing technology named IntraStem with a view to initially developing orthopaedic treatments.
The company’s therapeutic assets include a human growth factor to encourage bone tissue repair and a late-stage therapy for osteomyelitis, a rare bone infection caused by bacteria or fungi spreading from the bloodstream which can be resistant to antibiotics.
Locate has partnered an unspecified orthopaedic therapy supplier to complete the osteomyelitis program and will use the capital to support preclinical studies as it pursues development of both existing and new products.
Locate Bio was formerly known as Locate Therapeutics and had received $2.7m in a round which included a $541,700 contribution from the UK government and EU-backed Midland Engine Investment Fund’s Proof of Concept & Early Stage Fund, a vehicle managed by Mercia Technologies.
The round also featured Mercia’s EIS funds, which benefit from UK government tax breaks for venture capital investment.
The spinout was co-founded by Kevin Shakesheff, pro-vice-chancellor of the University of Nottingham faculty of science and director of research program UK Regenerative Medicine Platform Hub for Acellular Technologies.
Julian Viggars, chief investment officer of Mercia Technologies, said: “Locate demonstrates how Mercia can support the coupling of compelling, proprietary, university-derived technology with a strong team and clear market advantages developed within the Midlands, initially through our managed funds.”
“The team at Locate has now successfully moved from the research and development phase to commercialisation. We have been impressed by this transition and foresee considerable potential for delivering shareholder value in the medium term.”