Crowdsourcing has been used to finance everything from independent movies and comic books to novels and consumer products. Now add the creation of new drugs to the list. In the Conejo Valley, Applied Integrin Sciences Inc., in Westlake Village and Amethyst Life Sciences in Thousand Oaks, has joined the trend of this alternative way to fund research and development. “Early stage funding is hard to come by,” said Greg Cauchon, president at Amethyst. “(Crowdfunding) is another alternative and we want to evaluate every alternative out there.” Amethyst conducts contract research for other life sciences companies. So far Cauchon has relied on his own money and private financing to fund his company, but now he is preparing three divisions to go the crowdfunding route. However, crowdfunding involves dealing with non-professional investors. For Cauchon, his strategy is to be as upfront as possible about what putting money into his bio-tech means. It is a risky venture, he said, with lengthy timelines and regulatory hurdles. “It is not for the faint of heart or shallow of pocket,” he said. Applied Integrin Sciences started its crowdsourcing through website When You Wish in Venice at the end of August. The goal was to raise $200,000 by Nov. 18 for further development of its ovarian cancer drug. As of Oct. 8, contributions totaled $66,270. Donations are made in amounts ranging from $5 (for a digital certificate recognizing the donation) to $5,000 to be named a platinum corporate sponsor. The company also has a grant from the National Institutes of Health for its ovarian cancer drug. Material Impact The appeal of investing in the apparel industry was discussed Oct. 2 at a panel discussion hosted by networking group ACG 101 Corridor. Despite the reputation of volatility and unpredictability, clothing manufacturers are not grabbing the attention of private equity firms. Take for example Camarillo snow, skate and surf lifestyle apparel company Neff Inc. that received an undisclosed investment last December from Marlin Equity Partners in Hermosa Beach. Marlin was one of multiple firms interested in Neff, Roy Thorsen, chief operating officer, said during the discussion. The most important thing for Neff was to find a financial partner that management was comfortable with. That meant they would continue to run the company, Thorsen said. The best advice that he had for apparel companies looking to bring in outside financing was to make sure that the partner they choose brings in value. “If you have a private equity group that does not understand your industry, does not understand your brand, you are not getting value out of that long term,” Thorsen said. Eric Hartnack, president and co-founder of casual lifestyle brand Topo Ranch; James Williams, chief executive of clothier Planet Blue; and Lonnie Schnell, chief executive of zipper and trim manufacturer Talon International in Woodland Hills were also on the panel. Branch Expansion Grandpoint Bank added a new branch in La Cañada-Flintridge following its merger with Gilmore Bank. The Los Angeles financial institution now has eight branches in Southern California, including one in Encino that Grandpoint acquired in the December 2010 merger with First Commerce Bank. Gilmore Bank, with a main branch at the Original Farmers Market in Los Angeles, was founded in 1955 by the Gilmore family. As of June 30, the bank had assets of $171 million. Gilmore was looking for a merger partner that was financially strong and shared the bank’s values, said Hank Hilty, chief executive of the A.F. Gilmore Co., the bank’s holding company. “Grandpoint was an excellent match, and we know our customers are in good hands,” Hilty said in a prepared statement. “The merger with Grandpoint brings additional services to the bank that will benefit our existing clients and help attract new business.” When the deal closed last month, Grandpoint had assets of $2 billion. Grandpoint Chief Executive Don Griffith called Gilmore a “solid, well managed bank that shares our commitment to building strong, personal client relationships.” Staff Reporter Mark R. Madler can be reached at (818) 316-3126 or [email protected].
Crowdsourcing Craze Hits Local Biotech Scene
