Fractyl Laboratories, a US-based developer of a treatment for type 2 diabetes, closed a $44m series D round yesterday that included GV, the early-stage corporate venturing division of diversified conglomerate Alphabet.
The round, led by an unnamed, new investor, also featured True Ventures, General Catalyst, Bessemer Venture Partners, Domain Associates, Mithril Capital Management, Emergent Medical Partners, Deerfield Management Company and the IDO Fund.
Founded in 2010, Fractyl Laboratories is working on a minimally invasive treatment to reverse metabolic diseases. The money will go towards the company’s development of a therapy for type 2 diabetes and its ongoing randomised clinical study.
Fractyl previously closed a $57m series C round raised over two tranches, with Mithril leading an initial $40m tranche in 2014 that included General Catalyst, Bessemer Venture Partners and Domain Associates. Deerfield then joined the consortium for a $17m extension in 2015.
In 2013, Fractyl obtained $14.3m from unnamed investors, according to a regulatory filing. General Catalyst, Bessemer and Domain Associates were named as returning backers for the series C round, though the company has provided no further details.
Harith Rajagopalan, co-founder and chief executive of Fractyl, said: “More than 50 new drugs have been approved to manage type 2 diabetes, yet too many patients still remain unable to control their disease and are at risk for serious complications from their disease.
“At Fractyl we have developed a minimally invasive, catheter-based procedural therapy that we believe can help reverse type 2 diabetes and NASH [non-alcoholic steatohepatitis, a liver inflammation caused by the buildup of fat].”