Crystal Brown, Circnova & AI Drug Discovery

CircNova Secures $3.3 Million Seed Funding for AI-Driven Circular RNA Technology

A burgeoning biotech company based in Michigan, CircNova, has successfully completed a $3.3 million seed funding round. This investment will be used to advance their innovative technology, which leverages artificial intelligence to target and manipulate circular RNA.

This development signifies a potential breakthrough in the rapid creation of treatments for diseases currently lacking effective pharmaceutical interventions.

An Unconventional Path to Biotech Leadership

The funding round also represents a significant achievement for Crystal Brown, CircNova’s co-founder and CEO. Her journey to becoming a biotech entrepreneur has been notably unconventional.

Understanding Circular RNA

RNA, or ribonucleic acid, plays a vital role in translating genetic information into functional proteins. Circular RNA represents a recently identified class of these molecules.

Unlike traditional RNA strands, circular RNA forms a closed loop. This unique structure allows it to regulate crucial biological processes, offering a promising avenue for therapeutic development targeting complex health challenges.

NovaEngine: CircNova’s AI Platform

CircNova has created a “proprietary AI engine” capable of identifying, designing, and producing novel, non-coding, circular RNAs,” explained Brown in an interview with TechCrunch.

This AI system shares similarities with Google’s DeepMind AlphaFold, utilizing deep learning – rather than large language models – to generate and analyze new circular RNA structures for potential therapeutic applications.

Integrated AI and Wet Lab Capabilities

CircNova possesses not only its NovaEngine, which the company claims is the first globally capable of predicting circular RNA structures, but also a fully equipped wet lab.

This integration allows the AI engine to physically produce the molecules it designs, enabling validation and further research in collaboration with the University of Michigan, as highlighted by Brown.

“We have the ability to work in reverse, transitioning from sequence to structure and vice versa during molecule development,” she stated.

Targeting Untreated Diseases

The ultimate objective is to develop treatments for conditions that currently lack viable options, including ovarian cancer, triple-negative breast cancer, neurodegenerative diseases, and rare genetic disorders.

Expert Leadership

The technology is rooted in the research of CircNova co-founder Joe Deangelo, who serves as the startup’s chief scientific officer. He previously held leadership positions as CEO of Neochromosome and CSO of Apex Bioscience.

William Grenawitzke, the startup’s chief business officer, completes the founding team.

Insights from a Startup's Failure

Brown’s background presents an unexpected profile for a startup founder, as her professional trajectory was initially rooted in the automotive manufacturing sector for approximately seven years.

She was focused on advancing towards an executive position within the automotive industry when a friend connected her with the CEO of a life science startup. This CEO was seeking a business manager to join their team.

Intrigued, Brown initially volunteered to manage the startup’s bookkeeping on a part-time basis. This role quickly expanded as she began applying business strategies honed in automotive factories, notably refining their business contracts.

She actively sought to understand the underlying science, posing numerous questions to the team. Eventually, colleagues encouraged her to transition fully into the biotech field, leaving her automotive career behind.

“Initially, I doubted my credibility, considering my academic background in political science and women’s studies, rather than biology,” she reflects.

Despite these reservations, she took the risk, accepting a substantial reduction in salary from a lucrative six-figure position to an entry-level wage. This experience provided invaluable insights into startup operations, fundraising, and ultimately led to her promotion to director of operations. The company’s subsequent IPO yielded a significant financial return, enabling her to purchase a home.

Emboldened by this success, she embarked on launching her own biotech venture, establishing a contract research laboratory.

She successfully secured funding but then proceeded to make common mistakes often seen in first-time founders. “I expanded the team prematurely and invested in establishing a physical laboratory space,” she explained.

Within two years, the startup exhausted its financial resources, forcing its closure. This outcome was personally and financially devastating, even resulting in the loss of her home, she recounts.

However, this experience cultivated a strong reputation within Michigan’s close-knit startup ecosystem. Venture capitalists reportedly acknowledged her potential, stating, “You demonstrate the qualities of a capable founder.” Several expressed interest in supporting her future endeavors.

Anticipating her availability for a new venture, Deangelo began sharing scientific literature focused on circular RNA with her. He envisioned a novel application of this technology in conjunction with AI-driven drug discovery.

“He consistently sent me articles, often arriving at 5:30 each morning, sometimes five to ten at a time,” she remembers. “This was even before the previous company was fully dissolved.”

She diligently studied the material and became convinced of the idea’s viability. This led to the founding of CircNova in May 2023.

“I approached this venture with caution, focusing on minimal initial investments. I wanted to determine what could be achieved with a $15,000 grant,” she stated.

This initial funding facilitated the development of the startup’s foundational process. A subsequent $25,000 grant from the National Science Foundation enabled the filing of their first patent application.

She began dividing her time between Michigan and Boston, strategically positioning herself near both existing and prospective clients, including prominent companies like Moderna and Pfizer.

Investors, such as Nia Batts, a general partner at Union Heritage Ventures, readily supported Brown’s new venture.

“We recognize the inherent resilience required in the entrepreneurial journey,” Batts commented, adding that her decision to invest was solidified “immediately” upon meeting Brown and learning about the innovative concept.

This $3.3 million seed round was spearheaded by South Loop Ventures, a VC firm prioritizing diversity, and includes contributions from Dug Song, Union Heritage, Michigan Rise, Invest Detroit, Kalamazoo Forward Ventures, and SPARK Capital.