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Digg"The best hope for curing mental illness is neurotechnology," says Staglin Family Vineyard owner Garen Staglin, who with wife Shari stopped by our office recently to discuss their efforts to raise funds for mental health research and their hopes for neurotech companies. This class of biotechnology firm develops drugs, devices and diagnostics to fight a range of neurological disorders, such as Alzheimer's disease and schizophrenia.
The Staglins are long-time San Francisco Bay area entrepreneurs. Among other accomplishments, Garen serves on the board of directors of Solera Holdings Inc. [SLH] and is also a senior advisor at FTVentures.
In 1990, the Staglins' son Brandon, then 18, was diagnosed with schizophrenia. Since then the family has been on a crusade to advance research into mental and related illnesses. Today, Brandon works for the family winery, as does his sister, 28-year-old Shannon. Meanwhile, the family has raised $53 million for brain research, through efforts including the annual Music Festival for Mental Health, held each September at their Napa Valley vineyard (where, incidentally, the Lindsay Lohan re-make of "The Parent Trap" was filmed). Among the biggest contributors to their efforts are venture capitalists Larry Mohr of Mohr Davidow Ventures, Joe Schoendorf of Accel Partners and Silicon Valley Bank CEO Ken Wilcox.
Beyond charity, VCs are increasingly interested in technology for treating neurological disorders. Venture capital investment in neurotech grew 7.5% last year to $1.6 billion, according to industry group NeuroInsights. Recent fundings include:
- Allozyne Inc., a developer of a treatment for multiple sclerosis that obtained $30 million in Series B financing, led by MPM Capital
- Optherion Inc., which makes products to diagnose and treat age-related macular degeneration and which raised $37 million in a Series A from Quaker BioVentures, Domain Associates, Johnson & Johnson and others
- NeurAxon Inc, a developer of pain relief drugs that secured $32 million in a Series B, led by Delphi Ventures and OrbiMed Advisors LLC
There's also a growing group of publicly traded neurotech companies, with the Nasdaq NeuroInsights Neurotech Index debuting in September. The index lists more than two dozen companies, including Biogen Idec Inc. [BIIB], which makes the multiple sclerosis drugs Avonex and Tysabri; device makers Northstar Neuroscience Inc. [NSTR], which makes brain stimulation devices to help treat stroke and depression; and diagnostic specialist Natus Medical Inc. [BABY.O]. - Mary Kathleen Flynn
For more on Brandon Staglin's illness see story on SFGate.com
For more on Allozyne see Oct. 26 post from Tech Confidential
For more on NeurAxon see Aug. 20 story from TheDeal.com
