Queen City Angels defy bad economy, invest in 8 health care companies

Queen City Angels invested in seven life sciences companies and one health information technology company […]

Queen City Angels invested in seven life sciences companies and one health information technology company last year, according to its 2009 annual operating report (pdf).

The group of accredited investors finished the year with 12 investments, which included three IT companies and one company specializing in advanced materials.

In addition, the angel group created a $4 million QCA First Fund III after receiving a $2 million grant in 2008 from the Ohio Third Frontier, in collaboration with Health Foundation of Greater Cincinnati and Tri-State Growth Fund. The group has made three investments from the First Fund III.

  • Akebia Therapeutics–Cincinnati biopharmaceutical company focused on the development of small molecules for the treatment of anemia and vascular disease.
  • AssureRx–The Mason, Ohio company that provides bioinformatics to select the right drug and the right dose for patients, avoiding adverse drug reactions and improving response.
  • Charles H. Mack & Associates–The Cincinnati firm that develops and markets patient case management software for the health care industry.
  • Minimally Invasive Devices LLC–A Columbus company that is developing special-purpose medical instrumentation to enable surgeons to perform complex laparoscopic or minimally invasive, surgeries.
  • Neuros Medical–A Willoughby, Ohio company that is developing neurostimulation therapies for patients with chronic pain and other neuro-muscular disorders. Its therapies have potential applications in cancer pain, diabetic neuropathy, cerebral palsy, multiple sclerosis and stroke.
  • Orthodata Technologies–The Louisville, Ky., life sciences company has developed an innovative diagnostic system that will allow orthopedic surgeons to accurately diagnose the progress of spine fusion surgeries and eliminate the need for unnecessary exploratory follow-up surgeries.
  • RhinoCyte–A Louisville, Ky. company developing diagnostic tools and therapies for the stem cell treatment of degenerative and traumatic neurological diseases. The treatments use the patient’s nasal cells, which eliminates the need for immunosuppressive therapies.
  • SpineForm LLC–A Cincinnati medical device company that has developed a minimally invasive treatment for scoliosis that avoids spinal fusion

“We are consistently one of the most active investor groups in the United States, being recognized locally and nationally for our commitment to helping young and established companies alike take their business to the next level,” said John Habbert, secretary/treasurer of Queen City Angels, in the report.

“Along with our investment and incubator partners, we have been able to expand our influence across a much broader base of industries, providing necessary capital, as well as mentoring to more talented entrepreneurs and creative companies,” Chairman Tony Shipley said. “In addition, in 2009, we were able to develop an informal network with eight other angel investors from Ohio that will allow us to work together to help even more start-ups across the state.

“Despite our state’s and country’s economic struggles, we are seeing an uptick in entrepreneurship and innovation, which should have a positive impact on our local economy going forward,” Shipley said.

To date, the Cincinnati angels and their co-investors have provided more than $50 million in equity funding and their portfolio companies have raised more than $65 million in follow-on capital.

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