Technology Funding Venture Capital

Biotech firms have 90 drugs and vaccines on the market and 300 or so in late-stage testing, meaning 100 or more could be released in the next few years. The number of profitable biotech companies could shoot from 20 today to 50 within two years.*

*Source: Individual Investor Magazine, August 2001

I N V E S T M E N T F O C U S

In A Changing Market, Do What You Know Best

Technology Funding's focus today is on early-stage medical and biotechnology companies. We look for companies that that have strong management teams, large market opportunities, and possess either a proprietary technology or some other sustainable competitive advantage. Our investment activities are focused on, but not limited to, the following areas:

Medical Devices
Diagnostics
Biotechnology
Medical Information Systems
Healthcare Services

Technology Funding's investment portfolio includes innovative companies like these:

Endocare, Inc. [Nasdaq: ENDO], pioneered the use of cryoablation for the treatment of prostate cancer and benign prostate hyperplasia. Endocare's process uses an argon gas-based technology to freeze and kill cancer cells while sparing the surrounding healthy tissue. Endocare grew substantially in 2002 with 85 active Cryocare units now in place in the United States and record levels of utilization. A peer-reviewed study published in the July 2002 issue of the journal Urology reported that Endocare’s new nerve-sparing cryosurgery technique appears to preserve potency in most patients without compromising cancer control. While the urology market is Endocare’s primary focus, its cryoablation technology may also be applicable to other diseases, including liver and breast cancer, renal disease and cardiac arrhythmia.	Sanarus Medical, Inc., specializes in the development and commercialization of innovative surgical devices and technologies for the treatment of tumors in women. Under the terms of a strategic agreement with Endocare, Inc., Sanarus applies Endocare's proprietary, FDA-approved cryosurgical technology to breast tumors. Targeted cryosurgery is a minimally invasive procedure in which physicians use ultrasound monitors and a number of probes to precisely freeze and destroy cancerous tissue. The Sanarus Visica Treatment System is the only cryoablation technology approved for the office-based treatment of fibroadenomas, the most common form of benign breast tumor. Approximately 600,000 fibroadenomas are diagnosed each year. Cryoablation offers women a better alternative to surgery, general anesthesia and stitches.	Atherotech, Inc., is a privately held medical diagnostic company that has developed a next-generation cholesterol test that significantly improves the detection rate of individuals at risk for heart disease. The Vertical Auto Profile (VAP) test is an expanded cholesterol profile that provides direct, detailed measurements of cholesterol, or lipid, subclasses that play important roles in the development of cardiovascular disease, the leading cause of death in the United States. The price of the VAP test is comparable to the traditional cholesterol test and is reimbursed by Medicare and most insurance carriers. With the tremendous growth forecast in the cholesterol management arena, Atherotech expects to establish the VAP Test as the new standard for cholesterol risk assessment.
Impres Medical, Inc., is developing a non-surgical, non-drug-based treatment for gynecological disorders, including menorrhagia, abnormal uterine bleeding. Approximately 20% of women between the ages of 35 and 50 are affected by menorrhagia. Currently, treatment options are limited to hysterectomy or endometrial ablation, both of which require anesthesia and a recovery period. The Impres technology is an implant designed to deactivate the uterus without surgery. Proceeds from Impres’ first round of financing are being used to fund human clinical trials and establish proof of concept for the firm's device. Early test data indicates positive results, even as the company continues to optimize the design. Impres hopes to have FDA approval within five years.	Acusphere, Inc., develops new drugs and drug delivery products based on its porous microparticle technology. Acusphere embeds air within biocompatible polymer spheres smaller than a human red blood cell that can be injected into the blood stream. Acusphere currently has two products in Phase I clinical trials – a microparticle formulation of a leading inhaled asthma drug and a unique formulation of paclitaxel, the active compound in the widely used cancer drug Taxol. The Taxol compound is based on Acusphere's hydrophobic drug delivery system (HDDS), which enhances the dissolution of drugs with poor water solubility. Forced to cancel an initial public offering in late 2001 due to market conditions, Acusphere is poised to try again when the IPO market recovers.	CellzDirect, Inc.’s business is based on identifying, procuring and packaging specific human and animal cells for biotech research in more than 150,000 laboratories worldwide. The company identifies hard-to-get normal cells and proprietary diseased cell lines that scientists need to complete their experiments and accelerate research. CellzDirect estimates the market for moving cells and proprietary cell lines into the research community for drug and diagnostic discovery at a billion dollars. In operation since August 2002, CellzDirect expects to provide the research community with liver hepatocytes used for drug metabolism and induction studies, pancreatic islet cells which are used for diabetes research, and umbilical stem cells used for tissue engineering, neurological disorders and cancer research.