Rex Health Ventures, a venture capital fund started in the spring with a $10 million investment from community nonprofit hospital Rex Healthcare, has announced its first investment—a $500,000 equity placement in Aerial BioPharma. Formed in January 2011, Aerial is developing a treatment for narcolepsy, the chronic, neurological sleep disorder. Rex Health's investment is part of a $3.8 million funding round that also includes 3G Capital.
Venture capital investors are wide awake to the benefits of sleep. 48 VC firms have completed financings for U.S. companies that develop sleep disorder therapies, track sleep patterns or provide sleep promoting products. Unlike many other spaces in the VC world (namely, IT), these companies' locations are not dominated by the West Coast. Rather, the Mid Atlantic region provides the resting place for the biggest share of sleep focused companies, followed by the Midwest.
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