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- Cernostics
Cernostics Acquisition, Valuation, Funding & Investors
Cernostics was acquired by Castle Biosciences for $3B in October 2021, a 5.0x multiple on $588M of revenue.
Cernostics revenue at acquisition
$588M
Last twelve months · Oct 2021
Cernostics revenue multiple at acquisition
5.0x
EV/Revenue · Oct 2021
Cernostics EBITDA multiple at acquisition
8.9x
EV/EBITDA · Oct 2021
About Cernostics
Cernostics is a life sciences company developing molecular diagnostic tests for cancer using its TissueCypher platform. Pittsburgh-headquartered, the technology analyzes whole-slide images with multiplexed immunofluorescence to assess tumor microenvironments in esophageal and gastric cancers. Cernostics partners with pharma companies for companion diagnostics supporting immunotherapy decisions.
Founded
2008
HQ
Website
Status
Acquired
Customer focus
B2B
Revenue model
Services
Revenue
$588M (Oct 2021)
Valuation
$3B (acquired Oct 2021)
Cernostics Acquisition
Cernostics was acquired by Castle Biosciences for $3B on 19 October 2021.
The acquisition price implies a 5.0x revenue and 8.9x EBITDA multiple on $588M of revenue.
Before the acquisition Cernostics had raised $18M across 6 funding rounds.
| Acquirer | Date | Type | Price | EV/Revenue | EV/EBITDA |
|---|---|---|---|---|---|
| 19 Oct 2021 | Strategic M&A | $3B | 5.0x | 8.9x |
Cernostics Funding History
Cernostics has raised a total of $18M across 6 funding rounds.
Cernostics' first fundraising round was a $1M seed round in July 2013. The most recent completed round was a $6M Series A in August 2021.
Cernostics funding rounds
| Date | Stage | Investors | Raised | Deal Summary |
|---|---|---|---|---|
| Aug 2021 | Series A | - | $6M | - |
| Mar 2018 | Series A | Illumina Ventures (lead) | $3M | Cernostics raised $2.5 million in Series A1 financing led by Illumina Ventures on March 21, 2018. The funding brought total capital raised to $13 million, including prior investments from UPMC Enterprises, Novitas Capital, Geisinger Health System, the Pittsburgh Life Sciences Greenhouse, and Ben Franklin Technology Partners of Northeastern PA. Cernostics develops next-generation cancer diagnostics and prognostics using its TissueCypher Image Analysis Platform. The proceeds will support clinical and market development studies for the TissueCypher Barrett's Esophagus Assay, the first test predicting esophageal cancer risk in Barrett's esophagus patients. |
| Aug 2016 | Series A | UPMC (lead); Novitas Capital | $5M | Cernostics is an oncology diagnostics company developing precision medicine technology, including the TissueCypher platform for identifying cancer risk in conditions like Barrett’s Esophagus, with potential applications in lung, breast, and colon cancer. On August 31, 2016, the Pittsburgh-based company raised a $5 million funding round led by UPMC Enterprises, the commercialization arm of UPMC, with participation from Novitas Capital. Previous investors included Geisinger Health System, Ben Franklin Technology Partners of Northeastern Pennsylvania, and the Pittsburgh Life Sciences Greenhouse. The company had raised $11 million total since 2010, including a Series B round in 2013 and follow-on funding in 2014. The investment supports growth and acceleration of Cernostics’ diagnostic test for Barrett’s Esophagus, a precursor to esophageal cancer, while providing UPMC physicians and scientists access to the technology platform for developing additional precision medicine tests. UPMC views the partnership as strategic, leveraging its clinical expertise, provider network, and insurance capabilities to advance commercialization in oncology diagnostics. |
| Jun 2015 | Seed | Ben Franklin Technology Partners of Northeastern Pennsylvania (lead) | $2M | - |
| Dec 2013 | Series B | Novitas Capital; Pittsburgh Life Sciences Greenhouse; Geisinger | $1M | - |
| Jul 2013 | Seed | Novitas Capital (lead) | $1M | - |
Who has invested in Cernostics?
6 investors have backed Cernostics across its funding rounds, including Novitas Capital, Illumina Ventures, UPMC, Ben Franklin Technology Partners of Northeastern Pennsylvania, Pittsburgh Life Sciences Greenhouse and Geisinger.
Lead investors include Illumina Ventures, UPMC, Ben Franklin Technology Partners of Northeastern Pennsylvania and Novitas Capital.
Cernostics Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| 3 | Lead | Jul 2013 | ||
| 1 | Lead | Mar 2018 | ||
| 1 | Lead | Aug 2016 | ||
| 1 | Lead | Jun 2015 | ||
This data is available for Pro users. Sign up to see all 6 Cernostics investors. Start Free Trial | ||||
Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
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Start Free TrialCernostics Competitors
Cernostics competitors include listed companies like Insight Lifetech and BillionToOne, and private ones like ArsenalBio, EverlyWell, Ankon Medical Technologies and CMR Surgical.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Private | - | - | $1.9B | - | ||
| Publicly listed | $81M | $18M | $1.8B | 21.4x | ||
| Publicly listed | $305M | $12M | $5.2B | 11.7x | ||
| Private | $100M | - | $1.3B | 13.0x | ||
| Private | - | - | $870M | - | ||
| Private | - | - | $3B | - |
Cernostics Public Comps
Cernostics is no longer listed, but its public comps include TransMedics, AtriCure, Carl Zeiss Meditec, CareDx, Lepu Medical Technology, GeneDx, Autobio Diagnostics, Medacta Group, Axogen and Veracyte.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $605M | $149M | 5.6x | 4.8x | 22.9x | 21.3x | |||
| $535M | $12M | 5.4x | 5.0x | 247.3x | 36.3x | |||
| $2.6B | $392M | 1.2x | 1.3x | 8.1x | 9.8x | |||
| $380M | ($10M) | 6.5x | 5.3x | (249.3x) | 41.0x | |||
| $967M | $292M | 3.7x | 3.8x | 12.3x | 14.2x | |||
| $428M | $7M | 7.4x | 6.8x | 477.6x | 183.5x | |||
| $630M | $253M | 4.1x | 4.0x | 10.2x | 10.5x | |||
| $788M | $226M | 3.8x | 3.5x | 13.2x | 12.7x | |||
This data is available for Pro users. Sign up to see all Cernostics competitors and their valuation data. Start Free Trial | ||||||||
Common questions about Cernostics
| When was Cernostics founded? | Cernostics was founded in 2008. |
| Where is Cernostics headquartered? | Cernostics is headquartered in San Francisco, CA, United States. |
| Is Cernostics publicly listed? | No, Cernostics was acquired by Castle Biosciences in October 2021. |
| Who acquired Cernostics? | Cernostics was acquired by Castle Biosciences in October 2021. |
| How much was Cernostics acquired for? | Cernostics was acquired for $3B in October 2021, a 5.0x revenue multiple. |
| How much funding has Cernostics raised? | Cernostics has raised $18M across 6 funding rounds. |
| What was Cernostics' last funding round? | Cernostics' last funding round was a $6M Series A in August 2021. |
| Who are Cernostics' investors? | Cernostics' investors include Novitas Capital, Illumina Ventures, UPMC, Ben Franklin Technology Partners of Northeastern Pennsylvania, Pittsburgh Life Sciences Greenhouse and Geisinger. |
| Which companies are comparable to Cernostics? | Companies comparable to Cernostics include ArsenalBio, Insight Lifetech, BillionToOne, EverlyWell, Ankon Medical Technologies and CMR Surgical. |
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