Zylö Therapeutics has secured funding to advance its Z-pod topical delivery particles, putting together a $5.2 million series B round to support work on a technology with applications in erectile dysfunction and cutaneous lupus.
South Carolina-based Zylö is built on technology called Z-pods, engineered amorphous silica particles designed to encapsulate compounds. Through encapsulation, the company aims to extend the release of the payload, enable targeted delivery, enhance dissolution and otherwise improve the administration of compounds with a range of physicochemical properties.
The potential of the technology has attracted investors including VentureSouth, which contributed more than $1.3 million to the series B, the New York Angels, SC Launch, the Boston Harbor Angels and the Cowtown Angels.
That mix of new and existing investors came together to pump $5.2 million into Zylö, adding to the $4 million series A round that the company raised in 2019. Zylö issued the series B shares at $0.50, up close to 50% on the series A price.
Armed with the money, Zylö will complete internal research projects, further scale up the manufacturing process for Z-pod and fully implement ISO-9001 and cGMP quality systems. The funding also gives the company a financial cushion as it enters a potentially tricky period for VC-backed startups.
“The series B funds will extend our runway and hedge against the risk of a recession over the next two years, while simultaneously financing investments that will accelerate growth,” Charles Hinkle, chief financial officer at Zylö, said in a statement.
Zylö is applying its technology to erectile dysfunction and cutaneous lupus, an indication in which it has assessed the ability of Z-pods to improve the bioavailability of the endocannabinoid AEA. The company teased upcoming news about “prospective partners that are conducting human studies to demonstrate Zylö’s technology can help combat aging, hyperpigmentation, acne and diabetic foot ulcers.”