Capstone Partners Leads Keraderm to Complete Venture Financing

Capstone Partners advised Keraderm Corp., with the completion of an early round of venture financing supported by NewVa Capital Partners, LP, an affiliated investment fund of Third Security, LLC.  The financing will help support continued development and ultimate commercialization of Keraderm’s proprietary UV-light-based treatment of onychomycosis, an invasive fungal infection of the nail and nail bed.  Capstone has served as Keraderm’s investment banking advisor to help support the Company’s strategic direction and explore various partnership and financing alternatives.

Keraderm Corp., headquartered in Blacksburg, VA, has developed a proprietary platform technology for the treatment of a wide variety of skin and nail infections.  The Company’s patented ultra-violet light-based technology has the potential to effectively treat infections caused by drug-resistant organisms, such as MRSA, as well as effectively treat certain infections without the substantial side effects and costs related to many currently prescribed medications.

The Company’s first application is an innovative germicidal light-based solution for the effective treatment of mild to moderate onychomycosis.  Keraderm’s treatment has shown exciting results in pre-clinical and early clinical testing – the Company believes its solution enables more effective, less risky, less costly, and more rapid treatment of the condition than is currently available in the market.

Mark Young, head of Capstone’s Technology Solutions practice, commented, “Keraderm’s elegant light-based solution represents a compelling value proposition for the Company’s target markets.  The additional funding and partnership with NewVa Capital Partners will help enable the Company to more rapidly and effectively commercialize its platform technology, as well as help establish Keraderm as a leading provider of innovative treatments for a variety of infections.”

NewVa Capital Partners, LP is a private equity/venture capital fund created to make investments in companies that are considering initiating operations in, currently operating in, or willing to relocate all or a significant portion of their business to, the NewVa region of southwestern Virginia.  The fund was created in 2004 by its founding partners: Virginia Tech Foundation, Carilion Clinic and Third Security, LLC.  Third Security RNR LLC is the general partner and manager of the Fund.  Third Security, LLC is the manager and operator of Third Security RNR LLC.

Third Security, LLC is an independent private equity and venture capital firm formed in 1999 to manage investments in public and private companies.  Third Security evaluates opportunities in a wide range of industries, but principally focuses on emerging through late-stage investments in life sciences and information technology.