Clinical Research IO Closes Second Round Led by NXT Ventures, Rally Ventures
CAMBRIDGE, Mass. -- Clinical Research IO (CRIO), a Cambridge-based technology company that has developed the first e-source system for clinical research sites, announced today it closed a seed round of $1.6MM in funding. The round follows the company's first seed round of $800K in January. The new round will be used to fund the company's sales growth. Since launching its product in September, the company has acquired 50 customers and reached agreements with two leading electronic data capture (EDC) systems to integrate data feeds.
Currently, most clinical research is conducted on pen-and-paper, with data later manually entered into EDC systems for pharmaceutical sponsor review. The initial paper-based data capture and subsequent manual entry and auditing creates significant inefficiency in the industry -- an estimated total cost of $6 billion per year.
CRIO's system replaces the paper forms with an interactive tablet application. Using the system, researchers are able to configure e-source templates, and use a tablet to capture data quickly and accurately. The system's alerts, skip logic, auto-calculations and other quality assurance features address up to 50% of common audit findings, according to a third party review by a noted industry quality expert.
Both funding rounds were led by NXT Ventures, a Boston-based early-stage venture firm that focuses on disruptive technologies, and Rally Ventures, a Silicon Valley-based early-stage firm focusing on business technology.
"CRIO has the potential to become the standard for data collection in an industry that is otherwise highly fragmented and paper-bound," said Raymond Chang, principal of NXT Ventures. "They have tapped into a lot of pent-up demand from research sites and proven that a well-designed product will be embraced very quickly in the industry." Chang will continue to serve on the company's board of directors.
"CRIO is solving a very large problem in a creative manner. By creating an installed base of active users, they are making long sought-for efficiencies an achievable reality for pharmaceutical sponsors. Their approach is unique, well thought out, and well executed," said Tom Peterson, venture partner of Rally Ventures. Peterson will continue to serve as board observer.
Besides the two lead investors, CRIO also raised funding from its officers, a group of angel investors, and a number of industry investors, including several early customers. Sankesh Abbhi, a clinical research entrepreneur, is among the investors, alongside Joe Caruso, a noted angel investor, and Dr. William Hsu, a prominent endocrinologist with Joslin Diabetes Center.