By Dale Kasler, Bee Staff Writer
Sacramento Bee
(Published Jan. 3, 2004)

DFJ Frontier, an affiliate of Redwood City's highflying Draper Fisher Jurvetson, said Friday it led a $2.1 million investment in Lipomics Technologies Inc. of West Sacramento. Lipomics said it is talking to other potential investors in hopes of bringing the deal to $2.5 million.

Lipomics uses the study of the fatty acids known as lipids to predict diseases. Its spokeswoman, Jan Kingsbury, said the fresh investment dollars will be used to beef up its science staff and move to a bigger headquarters on West Sacramento's Industrial Boulevard.

The Lipomics deal represents DFJ Frontier's fourth investment but its first in Sacramento.

Lipomics has been doing great things, said Scott Lenet, managing director of DFJ, adding that it is the kind of company that gave DFJ the confidence to open an office in Sacramento.

DFJ, which also has an office in Santa Barbara, was bankrolled with $20 million from the California Public Employees' Retirement System. The fund opened its office in Sacramento in late 2002 and made its first three investments in Chico, Santa Cruz and San Diego.

The investment represents Lipomics' third round of financing and its first from a venture capital firm. Its first two rounds were financed by so-called angel investors, some of whom participated in this latest round as well. DFJ's share was $500,000.