Enveda, backed by Microsoft, raises $130M for I&I, obesity, and more drugs

Biotech startup Enveda has successfully secured $130 million in Series C funding, as announced by the Colorado-based company on Thursday morning. Founded and spearheaded by Viswa Colluru, a former employee of Recursion, the startup plans to utilize this capital to advance its pipeline of ten drug development candidates. One of these candidates already commenced human trials last month.

The newly acquired funds will enable the 250-employee company to achieve clinical proof-of-concept for three to five of its drug candidates, according to Colluru in a phone interview on Thursday. Among these is a once-daily oral drug aimed at treating obesity, which is expected to enter human trials by mid-next year.

Enveda, a five-year-old company, specializes in mapping plant chemistry and leveraging machine learning, among other techniques, to develop therapeutics derived from these insights. The company believes that nature continues to be a rich source for the next wave of medicinal products, drawing parallels to successful drugs like morphine, aspirin, metformin, and warfarin, all of which have natural origins.

Last year, Shaquille Vayda, principal at Lux Capital, noted that while many pharmaceutical companies have historically dismissed natural products, Enveda's approach is gaining traction and interest. Enveda's first drug candidate, ENV-294, an experimental oral treatment for atopic dermatitis and other inflammatory conditions, entered clinical trials last month. This development has piqued the interest of pharmaceutical companies, and Colluru mentioned the possibility of partnerships on certain programs.

In addition to anti-inflammatory drugs, Enveda is exploring treatments for obesity using a hormone mimetic, various types of fibrosis, chronic pain, and neurological conditions. Their research includes MRGPRX4 antagonists, NLRP3 and TL1A pathway inhibitors, and TGR5 agonists.

With the recent funding round, Enveda's total raised capital has reached $360 million. Investors include Lux Capital, Dimension Capital, Microsoft, Kinnevik, Baillie Gifford, and several others. The company has experienced rapid growth, with Colluru initially investing $50,000 of his own money, supplemented by $220,000 from friends and family. This financial flexibility positions Enveda well for future financing steps.

Co-founder of VC firm Dimension, Zavain Dar, previously expressed confidence in Enveda's potential, stating that the company could build a $50 billion business focused solely on therapeutics over the next decade.

Enveda also has operations in India, where Colluru was raised, further expanding its global footprint and leveraging a diverse range of resources and insights to fuel its innovative drug development efforts.