News Article

Neal Hunter-backed startup raises $3.5M
Date: Mar 10, 2014
Author: Lauren K. Ohnesorge
Source: bizjournals ( click here to go to the source)

Featured firm in this article: Novan Inc of Morrisville, NC

A Durham startup with big-name backers, Novan Inc., snagged a $3.5 million loan on Monday.

Novan, which counts Cree (Nasdaq: CREE) founder Neal Hunter and GlaxoSmithKline (NYSE: GSK) veteran Bob Ingram among its investors, is fronted by CEO Nate Stasko.

The company is researching treatments based on nitric oxide - not to be confused with nitrous oxide, the laughing gas variety - with potential in wound care, acne and other areas of treatment, according to Stasko.

Last year, Novan earned a $7.8 million contract to develop its platform in burn care. Its big-name backers told me previously that the platform's flexibility makes the company attractive from an investing standpoint.

"(Novan) technology can impact so many different therapeutic areas," Hunter told me last year.

As for this round, Novan had 36 investors, according to a securities filing. The first sale happened on Feb. 24.