CircNova, a Michigan-based biotech startup, has completed a $3.3 million seed round to advance its technology, which uses artificial intelligence (AI) to target “circular RNA.”
Crystal Brown co-founded CircNova in May 2023 with scientist Joe Deangelo. Brown told TechCrunch that it has since developed a “proprietary AI engine that allows us to identify, design, and then produce novel, non-coding, circular RNAs.”
RNA, or ribonucleic acid, is present in all cells and is a key molecule that carries the instructions to convert genetic information into proteins. First discovered in 1976, circular RNA — a class of structures that forms a circle rather than a strand — regulates critical biological processes, per TechCrunch.
The aim is to “treat diseases we haven’t treated so far, things like ovarian cancer, triple-negative breast cancer, neurodegenerative diseases, rare genetic diseases,” Brown said.
CircNova’s website states that its AI NovaEngine is the first in the world capable of predicting circular RNA structures. Brown told TechCrunch that the technology can generate actual physical molecules in a wet lab, which can then be validated and studied in cooperation with the University of Michigan.
Brown got her start in the automotive manufacturing industry but later transitioned to support a biotech startup. She was able to successfully apply business strategies from auto factories to improve the startup’s operations, including overhauling business contracts.
After leaving her job in automotive manufacturing to focus on the startup full-time, Brown found success when the company went public. With a healthy payout, she launched her own biotech startup, a contract research lab.
However, she made common beginner mistakes, such as hiring too quickly and prematurely opening her lab, according to TechCrunch. Two years later, her startup depleted its funds, resulting in its closure.
Despite the setback, Brown maintained a strong reputation in Michigan’s close startup community. She recalled that venture capitalists reassured her, saying, “You’re a good founder anyway,” and expressing willingness to fund her future ventures.
Shortly after that, Deangelo — former CEO of biotech Neochromosome — was interested in collaborating with her and began sharing scientific articles on circular RNA with her. He proposed an idea for using it with AI drug discovery, according to TechCrunch. Agreeing that he was on to something, the two co-founded CircNova and Deangelo became its chief scientific officer.
“I went into it very cautiously, throwing just a few things at the wall,” Brown said. “What can I do with the $15,000 grant to get it started?”
The initial funding led to the development of the startup’s first process, and a subsequent $25,000 grant from the National Science Foundation facilitated the first patent application.
Diversity-focused venture capital firm South Loop Ventures led CircNova’s $3.3 million in funding, which included additional investments from Dug Song, Union Heritage, Michigan Rise, Invest Detroit, SPARK Capital, and Kalamazoo Forward Ventures.
As previously reported by AFROTECH™, Kalamazoo Forward Ventures (KZFV), recognized as the first Black-owned investment fund in Southwest Michigan, launched in September 2024 with $50 million in capital from limited partners. The fund aims to support underrepresented founders and startups in Kalamazoo, MI.
“It’s our job now as investors to this community and this ecosystem to now get that capital to folks who traditionally never have it,” said Jamauri A. Bogan, CEO of Bogan Developments and KZFV general partner, AFROTECH™ noted.
