Crescendo Bioscience, a US-based developer of tests for rheumatoid arthritis, has raised $31m in its series C round with a further $25m in venture debt and buyout option provided by strategic investor Myriad Genetics.
As part of its $25m in non-dilutive debt, Myriad has a three-year option to acquire Crescendo Bioscience for a predetermined multiple of revenue. It is relatively unusual for a company to provide a venture debt package while taking out a takeover option but offers the venture capital backers a chance to leverage their returns and has been discussed as an option by corporate venturing units.
Aeris Capital, the investment office of Germany-based software maker SAP’s co-founder Klaus Tschira, led the C round of equity, and was joined by venture capital firms Mohr Davidow Ventures and Kleiner Perkins Caufield & Byers and undisclosed others.
Pete Meldrum, executive president of Myriad, said: "As part of our focus on investing for future growth, we have identified Crescendo as a franchise with strong potential; one that we believe will transform the management of chronic inflammatory diseases."
Crescendo Bioscience previously raised $5m in its series B round in late 2009 to take its then-total since launch to $20m.