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V O L . X X X N O. V M A R C H 4 , 2 0 2 4 16 L I F E S C I E N C E S / B I O T E C H "When economic uncertainty abates, look for life sciences investment to rebound," she says, predict- ing another banner year for mergers and acquisi- tions, a potential uptick in stock offerings and a more favorable commercial real estate market for life sciences companies. She also notes that while large life sciences markets benefit from industry clusters, "emerging markets have been creating their own ecosystems through strong job growth." ough she did not mention any regions by name, that bodes well for the Pine Tree State, whose $2.2 billion life sciences sector employs more than 9,500 people at 484 companies, according to the Bioscience Association of Maine. But hiring skilled workers costs money, and many small startups turn to out-of-state venture capital when their expansion plans require more resources than those closer to home. Scaling up at Salmonics Maine startups in active fundraising include Salmonics LLC, a five-employee company based at Brunswick's TechPlace technology incubator. e company, founded in late 2020, turns blood from farmed salmon into biomedical products for research and health applications. e blood would otherwise be discarded as waste. "We are targeting ideally $1.5 million in order to provide us a 12- to 18-month runway," says Cem Giray, the CEO and president, who plans to use the money to hire staff, promote sales of existing prod- ucts, commercially launch new products in develop- ment and develop new ones for which the research has been completed. Well aware of VC's rough ride in 2023, Giray expects to land a third of the targeted investment amount within the next month and complete the round by mid-summer. "I believe in our products, which are based on technology developed over 20 years by smart people, and there's proof that it works well, which gives me confidence that it will work out," he says. In addition, investors "are actually quite excited to find that there are companies like us in Maine. When they learn about TechPlace," he says, "they're surprised there is that much going on." He also says that being revenue generating sits well with investors needed to fund the company's next chapter. "To take the next step I need to hire help, and that is not going to happen with me. at's when you need investment," he says. "I wish I knew that six months earlier, and that's probably a piece of information that's good for other startups to know before they stall." Digital health trailblazers In the digital health niche, MedRhythms has raised $55.2 million in four funding rounds to date, including $19.4 million last November, an amount that includes equity as well as the conversion of outstanding convert- ible notes issued earlier in the year. Founded in 2015 by Brian Harris and Owen McCarthy, the Portland-based company with Massachusetts roots recently released InTandem, an FDA-authorized "prescription music" device for home use to improve walking and movement in chronic stroke victims. e company has a roster of 38 employees and 10 institutional investors. While around 80% of the $55.2 million comes from outside Maine, early rounds were tough. "Initially, our location in Maine prompted questions from investors accustomed to biotech hubs like Boston or San Francisco," says Harris, who has observed a shift in perception since the pandemic. "Southern Maine, in particular, has become increasingly attractive to startup companies and investors alike." Out-of-state investors including Advantage Capital and Boston-based Morningside Ventures, as well as Switzerland's Novartis Pharmaceuticals AG, account for 80% of MedRhythms' total, while investors closer to home include the Maine Venture Fund. "is distribution reflects our global appeal and the support of our local community," Harris says. "It speaks to our vision of building a world-class company from Maine, showcasing our potential from here on the national and international stage." Reflecting on what he's learned so far from court- ing investors, Harris underscores the need to articulate clarity and vision, establishing credibility early and emphasizing milestones. "Investors are keen to under- stand the tangible outcomes their capital will facilitate, making the explicit linkage between funding, mile- stones and value critical," he says. Similar to MedRthyms, Senscio Systems is a digital health startup with Massachusetts roots and strong ties to Maine. Piali De, the company's co-founder and CEO, makes the most of the ability to pitch remotely while keeping a Boston base to forge better connections with investors located there. "Investors still care about our corporate headquar- ters," says De, a Brown University-educated physicist and inventor. "Frequently in initial pitches, I am often asked, 'Where are you headquartered?' en if I say, 'In the Boston area,' they say, 'Let's meet in person.' It » C O N T I N U E D F RO M P R E V I O U S PA G E C O N T I N U E D O N PA G E 1 8 » Cem Giray is the founder and CEO of Salmonics LLC, a Brunswick- based developer and manufacturer of biomedical products made out of blood harvested from farmed salmon that would otherwise be discarded as waste. P H O T O / T I M G R E E N WAY F O C U S Piali De, co-founder and CEO of Senscio Systems P ROV I D E D P H O T O

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