money moves

Houston investor recovers from COVID-19 — then funds startups innovating solutions for the disease

Diane Yoo, who was hospitalized due to COVID-19 earlier this year, created a VC fund that's investing in health tech solutions for the disease. Photo courtesy of Medingenii

While so many of Houston's venture capital groups and entrepreneurs have been figuring out the best ways to navigate fundraising amid a pandemic, Diane Yoo managed to close an oversubscribed initial fund and deployed investments into health tech startups during COVID-19 — while also recovering from the disease itself.

Entrepreneur turned investor Diane Yoo launched her health tech-focused venture capital fund, Medingenii Capital, last year, but didn't start fundraising for its initial fund until this year.

Yoo says she and her partners, entrepreneur and investor Greg Campbell, neurologist Dr. Eddie Patton, Dr. Sreedhar Mandayam, and investor Gen Fukunaga, were virtually meeting with over a dozen potential investors weekly and closed the round in under two months.

It was right around closing when Yoo says she caught COVID-19.

"It ravaged every part of my body, and I ended up having to be hospitalized because I couldn't breathe," she says.

Yoo recovered after a month and a half of enduring the disease, only to come out of that experience to fund innovative Houston companies working on COVID-19 solutions. Medingenii focuses on early stage health tech, including genomics, health IT, medical devices, and patient engagement.

"The pandemic has really validated some of the business models we're invested in," she tells InnovationMap.

One example from Medingenii's portfolio is Houston-based medical device company, Vitls. The company's technology includes a wearable device that can monitor vital signs and sync with a smartphone app and sends key information to doctors remotely.

As Yoo thinks back to her COVID-19 treatment, Vitls could have helped her and her fellow patients get out of the crowded hospital wing and home to recover sooner — with the peace of mind of remote care thanks to the device.

"When I was in the ER room, it was overcrowded," Yoo says. "If you were not seriously ill, they would dismiss you because there was just no room. But if you went home with Vitls, you could have sent all your vitals to your doctor from home."

Fueled by a mission to find more health tech solutions like Vitls and with the quick pace of her first fund — Yoo says she's already deployed the capital into Houston-based startups and is looking toward the second fund, which will again focus on Houston startups.

"We really love Houston," Yoo says. "We want to invest a lot of our fund here, and we continue to do that and plan to do that. We see a lot of opportunity in Houston and look forward to working with the innovation ecosystem here."

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Tvardi Therapeutics Inc. has fresh funds to support its drug's advancement in clinical trials. Photo via Getty Images

A Houston-based clinical-stage biopharmaceutical company has raised millions in its latest round.

Tvardi Therapeutics Inc. closed its $74 million series B funding round led by new investors New York-based Slate Path Capital, Florida-based Palkon Capital, Denver-based ArrowMark Partners, and New York-based 683 Capital, with continued support and participation by existing investors, including Houston-based Sporos Bioventures.

"We are thrilled to move out of stealth mode and partner with this lineup of long-term institutional investors," says Imran Alibhai, CEO at Tvardi. "With this financing we are positioned to advance the clinical development of our small molecule inhibitors of STAT3 into mid-stage trials as well as grow our team."

Through Slate Path Capital's investment, Jamie McNab, partner at the firm, will join Tvardi's board of directors.

"Tvardi is the leader in the field of STAT3 biology and has compelling proof of concept clinical data," McNab says in the release. "I look forward to partnering with the management team to advance Tvardi's mission to develop a new class of breakthrough medicines for cancer, chronic inflammation, and fibrosis."

Tvardi's latest fundraise will go toward supporting the company's products in their mid-stage trials for cancer and fibrosis. According to the release, Tvardi's lead product, TTI-101, is being studied in a Phase 1 trial of patients with advanced solid tumors who have failed all lines of therapy. So far, the drug has been well-received and shown multiple durable radiographic objective responses in the cancer patients treated.

Dr. Keith Flaherty, who is a member of Tvardi's scientific advisory board and professor of medicine at Harvard Medical School, offered his support of the company.

"STAT3 is a compelling and validated target. Beyond its clinical activity, Tvardi's lead molecule, TTI-101, has demonstrated direct downregulation of STAT3 in patients," he says in the release. "As a physician, I am eager to see the potential of Tvardi's molecules in diseases of high unmet medical need where STAT3 is a key driver."

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