Castor Raises $45M to Revolutionize Clinical Trials

Castor Secures $45 Million to Revolutionize Clinical Trials

Castor is dedicated to accelerating clinical trials and prioritizing the patient experience. The clinical trial software firm announced Wednesday that it has secured $45 million in Series B funding. This investment will facilitate the continued modernization of trial processes as the industry increasingly adopts decentralized models.

Funding Details and Company History

The funding round was co-led by Eight Roads Ventures and F-Prime Capital, with participation from existing investors Two Sigma Ventures and Inkef Capital. This Series B round brings the total funding raised by Castor to $65 million since its establishment in 2012.

Addressing Inefficiencies in Traditional Clinical Trials

According to Derk Arts, M.D., co-founder and CEO of Castor, clinical trials are currently hampered by outdated methods. Setting up these trials is often a lengthy process, and continuous data monitoring is frequently absent.

A significant drawback is the requirement for patients to travel substantial distances to research locations. This contributes to slow patient enrollment, a factor responsible for nearly 40% of trial terminations. Furthermore, this inconvenience can limit the diversity of patient participation.

Castor’s Innovative Software Solution

Castor, operating on a remote-first basis with offices in New York and Amsterdam, is at the forefront of bringing technological advancements to a traditionally paper-based process. Its software offers a self-service platform, empowering researchers to design studies and seamlessly integrate patient data – both in-person and remote – from various sources in real time.

Patients interested in participating in trials can easily enroll and securely share their data through a dedicated mobile application.

Accelerated Growth During the Pandemic

The global pandemic spurred rapid innovation, and Castor responded by providing its software free of charge for COVID-19 research. This initiative resulted in a surge of new users and clients, including the World Health Organization.

The WHO utilized Castor’s platform for its “Solidarity Trial,” a large-scale study evaluating the potential of existing medications to improve patient outcomes. This study involved over 10,000 patients across 553 sites in 30 countries, as noted by Arts.

Industry Recognition and Market Potential

Michael Treskow, partner at Eight Roads Ventures, praised Arts for his directness and deep understanding of the challenges within the clinical trials sector. He highlighted Castor’s role in modernizing the industry.

“Technology is demonstrably impacting the field,” Treskow stated. “Castor is deeply committed to significantly improving clinical trials, and their collaboration with the WHO showcases the importance of this work. The swift development of COVID vaccines exemplifies the industry’s capabilities.”

The clinical trial market is currently valued at approximately $16 billion and is experiencing rapid growth, with an annual rate of 16%, according to Arts. This expanding market is attracting numerous companies focused on innovation, including Science 37 and Medable, which recently secured a $78 million extension to its $91 million Series C funding.

Future Plans and Expansion

The Series B funding will enable Castor to build out its teams to meet the demands of this rapidly evolving industry. The company experienced nearly triple-digit revenue growth last year and anticipates similar growth in 2021.

Currently employing 150 individuals, Castor plans to increase its workforce to 200 by year-end.

Arts, with a background in both software programming and medicine, explained that the new funds will be allocated to ongoing product development, enhancing interoperability, and gathering real-world evidence from decentralized trials. The company’s initial focus remains on the United States, with plans to expand into the Asia region later this year.

“Patients are entitled to a superior experience, and we are dedicated to providing it,” he concluded.