LOUISVILLE, KY (October 24, 2002) — Chrysalis Ventures, Kentucky’s largest venture capital firm and a leading source of equity capital for young growth companies in the Southeast and Midwest, announced today that it has invested $1.5 million in Oklahoma City-based Inoveon Corporation. This investment is part of a $17.5 million Preferred Series B Equity financing, the bulk of which closed mid-year 2002. Chrysalis’ co-investors in the financing include CenterPoint Ventures of Dallas, Massey Burch Ventures of Nashville, Chisholm Private Capital Partners of Oklahoma City and Prolog Ventures of St. Louis.
“This financing is a critical endorsement of our business model, proprietary technology platform and ability to become a market leader in this important healthcare segment,” says Bill Hagstrom, Inoveon Chairman and CEO. “This capital will allow us to rapidly scale-up marketing activities, accelerate deployment of new sites and continue investments in our operations infrastructure.”
Inoveon Corporation is a medical services company specializing in detecting, staging and monitoring diseases of the eye-diabetic retinopathy, macular degeneration, and glaucoma. The company’s initial target is to help patients and their providers improve diabetic retinopathy care through Inoveon diagnostic service centers that are either independent or co-located in high volume diabetes care sites.
Inoveon has developed a patented, highly accurate digital evaluation service for diabetic retinopathy called 3DT that offers a less expensive, more efficient way for primary care physicians to detect, track and manage patients with diabetic retinopathy, a leading cause of adult blindness. The service allows diabetic patients to access a safe, non-invasive retinal scan at a local Inoveon Patient Service Center. These images are then transmitted to the Inoveon Evaluation Center where they are analyzed. A comprehensive report with a disease management plan is sent back to the primary care physician within 48 hours.
Inoveon 3DT technology produces images in seven areas of each eye offering a superior method of evaluating diabetic retinopathy formerly available only in research studies. Inoveon use of this gold standard technique defined by National Institutes of Health research protocols delivers unparalleled accuracy in a clinical setting. In March 2002, the peer-review publication Ophthalmology published the findings of an independent clinical validation study of the 3DT technology, which achieved 98.3 percent sensitivity and 89.7 percent specificity for detection of vision threatening disease.
“We believe that Inoveon’s approach to diabetic screening will result in higher quality exams, quantitative staging and tracking of disease progression, and better patient compliance — all of which will ultimately lead to better patient care and lower costs,” says David A Jones, Jr., Chairman and Managing Director of Chrysalis Ventures. “Thus, this investment is directly in line with Chrysalis’ primary healthcare investment theme of using technology to increase the productivity and clinical efficacy of healthcare services.”
According to Hagstrom, the company’s long-term strategy targets additional diseases of the eye including macular degeneration and glaucoma. Headquartered in the Oklahoma Health Center Research Park, the company currently has over 40 employees and expects to double its workforce over the next 12 months.
About Chrysalis Ventures
Founded in 1993, Chrysalis Ventures is Kentucky’s largest venture capital firm and a leading source of equity capital for young growth companies in the Southeast and Midwest. Chrysalis invests primarily in early-stage and growth-stage companies in the business services, information technology, media and entertainment, telecommunications, financial services and healthcare sectors.
For more information, please visit www.chrysalisventures.com.
About Inoveon Corporation
Founded in 1997, Inoveon is a premier medical services company that delivers solutions to detect, stage and monitor diseases affecting the eye-diabetic retinopathy, macular degeneration, and glaucoma. Inoveon’s initial target is to help patients and their providers improve diabetic retinopathy care through Inoveon diagnostic service centers that are either independent or co-located in high volume diabetes care sites. For more information, please visit www.inoveon.com.