IRVINE, Calif. – February 1, 2022– Tech Coast Angels (TCA) today announced that one of its portfolio companies, Cognition Therapeutics, Inc., launched an initial public offering (IPO) in October 2021. The IPO was oversubscribed, raised approximately $52M, and at the time of the IPO had a valuation representing a 5.7x return to TCA members who invested in the company; there is still a lockup and the stock price has dropped, so the realized return is not yet known. TCA members invested a significant $1.15 million in the company, so it should be a meaningful dollar return.
Cognition Therapeutics, based in New York with laboratory operations in Pennsylvania, is a biopharmaceutical company in the process of developing a pipeline of oral drug candidates to treat neurodegenerative and neuro-ophthalmic disorders, such as Alzheimer’s disease. Prior to its IPO, the company raised about $43m from angel investors and small venture networks, received $120M in NIH grants and went from an idea to a first-in-class disease-modifying Alzheimer’s drug candidate that’s currently in a comprehensive Phase 2 clinical program. In 2016, the Angel Capital Association bestowed the Luis Villalobos Award, named after TCA beloved founder, on Cognition Therapeutics
“From the outset, we were so impressed with the team: their level of knowledge, their passion, their vision, and their confidence in a novel approach in the restoration of damage responses to neurodegenerative diseases,” said John Murphy, TCA deal lead. “But on top of that, Cognition Therapeutics consistently provided an incredible level of transparency in communications to its investors, with regular updates on progress and in the industry.”
“It was an absolute pleasure to work with TCA, and I’ve enjoyed relationships with many of its members, some of whom have a personal connection to the disease,” said Dr. Susan Catalano, Cognition Therapeutics’ CSO. “I received a lot of helpful advice and guidance, and it was a privilege to be able to share the journey with them.”
“This is a classic case of a startup with an excellent idea and leadership team that needed capital and connections from angels to advance its innovation,” said TCA chairman emeritus John Harbison. “TCA was able to provide guidance and help Cognition Therapeutics realize its full potential in its desire to stop the process of debilitating diseases such as Alzheimer’s.”