STARTUPS & INNOVATIONS

FINANCING

Cicero Diagnostics Inc. in Huntington Beach recently received a $1 million Phase II Small Business Innovation Research Fast Track grant from the National Institutes of Health.

The capital will allow the company to expand clinical trials for its diagnostic test, called ReceptivaDx, which looks for biomarkers including BCL6 and SIRT1. Both markers are highly associated with endometriosis, a condition in which tissue grows outside of the lining of the uterus. It is thought to be a leading cause of unexplained infertility.

The new study will include about 200 women going through in vitro fertilization to determine how well these markers can predict outcomes in different patient groups, according to Chief Operating Officer Dan Angress.

About 75% of women with unexplained infertility problems who have taken the ReceptivaDx test have confirmed positive for markers that indicate endometriosis. After receiving various treatments, over 60% of these women have gone on to have a baby, according to Chief Executive Chris Jackson.

Jackson said prior testing for endometriosis includes a laparoscopy operation. Due to costs and lack of trained professionals, that test is no longer common. For many women, it can take seven to 10 years to receive proper diagnosis and treatment for endometriosis. ReceptivaDx is offered in over 300 IVF (in vitro fertilization) clinics across the county and has two labs in Seattle and Greenville, South Carolina.

The company said it has seen more than 100% annual growth since its product launch in 2017.

LAUNCH

Irvine-based StudyKik LLC, a patient recruitment company for healthcare companies performing clinical trials, recently launched a new platform with direct scheduling and a patient transportation concierge service.

StudyKik connects patients with prospective trials via social media channels and web search results, before using its filtering and matching technology to pair patients and studies. From there, patients can directly message trial personnel and complete the enrollment process.

Company officials said these new additions will improve participating companies’ ability to differentiate between unqualified and qualified patients earlier in the process and connect selected patients with studies in a timely manner.

The new scheduling feature will allow agents to schedule patients in minutes, reducing the likelihood that patients fail to follow up or take part in a study after they have been approved.

StudyKik officials said that the industry has a 50% no-show rate, and claims its service reduces patient no-show rates by over 65%.

The company said it has connected over 3,600 research sites with patients since its launch in 2014.

StudyKik started in Costa Mesa before relocating to the Intersect office complex in Irvine in mid-2019.

ACQUISITIONS

Information Governance Systems in Irvine was acquired last month by Woburn, Mass.-based Access, which calls itself the world’s largest privately held records and information management services provider. Terms of the deal were undisclosed. 

Access was attracted to IGS’ software, called Virgo, which provides legal research on privacy and information governance requirements to attorneys, compliance officers and others. 

Rapidly expanding regulations have made it more challenging for organizations to meet compliance standards, said John Montaña, vice president of advisory services for Access.

For example: the California Consumer Privacy Act that recently went into effect gives consumers more control over their data; they have the power to request that companies delete their data or refrain from selling it to third parties. 

The new law is expected to cost California businesses about $55 billion, according to the Wall Street Journal.

IGS plans to keep its office just north of the Irvine Spectrum. Employees and leadership will become part of the Access team, which counts more than 2,500 employees. 

“We’re excited to join forces with IGS to offer the very best information governance consulting services and software,” Montaña said.

Newport Beach-based digital fitness coaching platform, Pear Sports LLC, has acquired Virginia-based Functional Solutions on undisclosed terms. 

Pear Sports plans to merge its audio coaching and biometrics software with Functional Solutions’ technology, which provides visual guidance and custom-ordered sequencing for individuals’ workout routines. 

The integration is key to Pear Sports’ software-as-a-service enterprise platform for users at gyms, hotels and resorts and aging centers, among other social environments, according to founder Bob Allison.

“We are proud to have the Functional Solutions team join Pear to expand our knowledge of the gym and boutique fitness markets,” Allison said. “We know our combined product offerings will allow Pear to increase market reach.”

Pear Sports started as a hardware delivery system with audio and video workouts for cyclist Lance Armstrong. The company launched its enterprise platform in late 2019.

The company has raised more than $15 million, in addition to a Phase I Small Business Innovation Research contract with the U.S. Air Force, since 2012.

The company has about 20 employees in Newport Beach and Solana Beach.

PERSONNEL

Laguna Niguel-based Agt3 Holdings, a consulting, design and build firm that specializes in vertical indoor growing systems, has added A.G. Kawamura to its board of directors.

Kawamura owns Orange County Produce LLC, one of the largest fruit and vegetable growers in Orange County. He served as secretary of the California Department of Food and Agriculture from 2003 to 2010.

Founder and Chief Executive Ed Horton Jr. launched Agt3 Holdings in 2017, following his role as founder and CEO at Irvine-based Urban Produce LLC, where he focused on high density vertical growing systems for brands including Jamba Juice and Pepsi Co. Horton said he is out of the growing business, instead focusing on designing and building systems for others.

Vertical growing is more sustainable than farmland; Horton said he can grow the equivalent of 9 acres on 1/8th of an acre vertically.

Horton added, “My ultimate goal is to build in local villages, to provide people with organic healthy greens, completely off the grid.”

Irvine-based Digital Motors Corp. recently added a new member to its board of directors: Alexei Andreev, managing director of Autotech Ventures, a Silicon Valley investment fund focused on the automotive and transportation industries. 

In addition, Autotech Ventures led a new financing round believed to be several million dollars.

Additional investors include InMotion Ventures, the London-based investment arm of Jaguar Land Rover; Open Road Auto Group; automotive expert Maryann Keller and Ryan Kerrigan; managing director of Kerrigan Advisors, an Irvine sell-side adviser in the auto dealer segment.

Digital Motors is building a digital retailing platform and fintech engine that provides dealerships with the tools to fully transact online. The company formed last year with Chief Executive Andy Hinrichs and Chief Operating Officer Nick Stellman, who both formerly led Irvine-based AutoGravity Corp.