Early cancer detection startup Craif raises $22 million

Craif raises $22M to expand its miRNA-based cancer detection in the U.S.

: Craif, a company initiated from Nagoya University, secured $22 million from a Series C funding round to enhance its miRNA-based cancer detection technology. Led by X&KSK, and including the Unreasonable Group in its first Japanese investment, Craif has gathered $57 million in total, reaching a near $100 million valuation. Its miRNA-focused software aims to make early cancer detection more accessible, treating cancers such as pancreatic and ovarian through urine-based, non-invasive testing. Craif's revenue target for this year is $15 million, and plans are in place to expand operations in the U.S. with a San Diego office and strategic collaborations.

Craif, a promising startup from Japan, has garnered significant attention by raising $22 million in Series C funding to further its pioneering work in early cancer detection. Established in 2018 and spun off from Nagoya University, Craif employs microRNA (miRNA) to power its AI-driven software, potentially revolutionizing the early detection of cancer. The startup, driven by personal experiences with cancer within its leadership, particularly Ryuichi Onose, focuses on non-invasive testing methods that could encourage more regular screenings. The Series C round, prominently supported by X&KSK as the lead investor, along with contributions from U.S.-based Unreasonable Group, TAUNS Laboratories, Daiwa House Industry, and Aozora Bank Group, pushes Craif's total funding to $57 million and elevates its valuation close to $100 million.

Ryuichi Onose, the co-founder and CEO, underscores the motivation behind Craif’s mission by drawing from personal family experiences. Onose partnered with Takao Yasui, a Nagoya University associate professor, to form Craif just a month post their initial meeting. Together, they leverage Yasui's development of a novel urinary biomarker technique intended to detect early cancer stages. Unlike more traditional methods such as blood tests, which tend to be invasive and may deter regular usage, Craif's urine-based test offers a less invasive and hence more appealing option for users concerned with comfort and ease of access.

The key to Craif’s innovative edge lies in its use of microRNA rather than conventional cfDNA (cell-free DNA) which many of its competitors utilize. miRNA has gained notable scientific interest and acknowledgment, linked to significant breakthroughs in cancer biology. It proves particularly effective in early cancer detection as miRNAs are actively secreted by early cancer cells, providing clear biomarker signals. This method not only minimizes measurement errors prevalent in blood-based tests but also enhances the usability of samples, thanks to urine's ease of collection and reduced impurities.

With miSignal, Craif’s flagship product that detects risks for seven cancer types, already generating revenue in Japan through extensive distribution channels, the company aims for further expansion. Onose proclaims a partnership with over 1000 medical institutions and roughly 600 pharmacies, serving around 20,000 users. The company's business model offers both single and subscription-based tests, accumulating $5 million in revenue in 2024, with projections to increase earnings to $15 million by the end of the year.

Looking forward, Craif intends to broaden its scope to cover more than ten cancer types and venture into non-cancerous disease detection, particularly neurodegenerative disorders like dementia. With an R&D lab established in Irvine, California, Craif plans a strategic U.S. expansion, underscored by a dyadic office strategy including the setup of a business operations hub in San Diego. This push is coupled with upcoming trials and vital collaborations with medical institutions across 15 U.S. states, aiming for FDA approval by 2027.

Sources: National Cancer Institute, TechCrunch, Crunchbase

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