CEO Puts On Clinic for How to Raise Money

When Brian Neman needed growth financing for his clinical-studies patient-recruitment firm, he found it with a combination of old-fashioned door knocking and newfangled technology. The chief executive of Sanguine BioSciences Inc. in Sherman Oaks secured more than $6 million in venture capital last year, though public sources only give him credit for $5 million because the first million was private. Still, BioSciences was ranked third among VC recipients in the greater Valley, according to a report by accounting firm PriceWaterhouseCoopers and the Venture Capital Association. That first $1 million came from Mayo Clinic Ventures, an investment outfit affiliated with the famed Rochester, Minn. medical center. Mayo also participated in the official Series A funding round in November worth $5.5 million. Neman started his search with a visit to AngelList.com, a website where startups can find investors. With a list of contacts in hand, he started making calls. Eventually he connected with several funds including Ceres Venture Fund LP in Chicago and Albany Capital plc in London. “It was hardcore pound-the-ground marketing,” he recalled. “We were introduced by AngelList to Mayo, and then I was introduced to Albany Capital and Ceres. I met everyone through AngelList.” Sanguine recruits patients with specific conditions for medical research studies via the Internet. It also has a network of nurses who visit the patients and collect blood samples. The company’s website allows researchers, nurses and patients to communicate with each other. But big pharma companies want more, Neman said. Clients now want the nurses to perform procedures such as memory tests for Alzheimer’s research, breathing tests for asthma and similar conditions, as well as collections of hair, urine and nasal swabs. The venture capital will fund training and technology so Sanguine can provide those services. The employee count is projected to grow from 25 currently to about 35. With the investment, Mayo started to handle lab work for analyzing the blood samples. That allowed Sanguine to leave its offices in Valencia and move to Sherman Oaks last year. “We’re closer to the action in terms of other service providers, lawyers, our bank and the employee talent pool,” Neman added. Also, Neman hopes that his investors can help land some big clients. “These are organizations with strong industry connections, so if we need an introduction to big pharma, they can help us,” he said. Board Shuffle The board at Henry Mayo Newhall Memorial Hospital has named Don Kimball as its new chairman and Judy Fish as vice chairwoman, in addition to adding two new directors. Roger Seaver, chief executive at the non-profit hospital in Valencia, said Kimball will bring financial savvy to the boardroom. Kimball’s day job is executive vice president of finance at Newhall Land & Farming Co., the Valencia developer. “Don’s financial background and knowledge will be invaluable as Henry Mayo continues to develop,” Seaver said in a statement. Kimball’s accounting and construction expertise will come in handy because Henry Mayo is involved in a major building project. The hospital plans to break ground this year on a 160,000-square-foot, six-story patient tower that could add 116 beds to its existing total of 238 beds. The parking structure is already under construction. Estimated cost: $150 million. Fish is the former superintendent of the Saugus Union School District and served on the Henry Mayo board from 2001 to 2011. She rejoined the board in 2013 and teaches classes at Cal State University Northridge. The other new board members are Cheri Fleming and Mark Chamberlain. Fleming is owner of Valencia Acura and served on the hospital foundation’s board from 1997 to 2012. Chamberlain is chief operating officer at the non-profit Alfred Mann Foundation. Popular Medicine Heritage Provider Network, a coordinated care management company in Northridge, has formed a joint venture with non-profit Catholic hospital chain Trinity Health in Livonia, Mich. The new company, called Trinity Health Partners, will practice population health management, in which providers contract to provide care for a large group of people and in return receive an annual per-person payment. Trinity Health will create new networks among doctors and hospitals to handle population contracts. While Heritage operates two large doctor groups in the Valley, Regal Medical Group and Lakeside Medical Group, Trinity Health is much larger. It has 86 hospitals in 21 states and annual revenue of $13.6 billion. The two companies’ geographical footprints don’t overlap, with Heritage exclusively in Southern California. Trinity has two hospitals in Fresno, but most are in the Midwest. Staff Writer Joel Russell can be reached at (818) 316-3124 or [email protected].