Astrocyte raises $9.5M to test first concussion drug in athletes
What's the deal? Astrocyte Pharmaceuticals, a Groton, Connecticut clinical-stage biotech, has closed a $9.5 million Series B led by DeepWork CapitalDealroom has a profile for this one. Try Dealroom →. New investors MintPharma CapitalDealroom has a profile for this one. Try Dealroom →, Waterstar CapitalDealroom has a profile for this one. Try Dealroom →, Dynagrow Capital, and Angel Star VenturesDealroom has a profile for this one. Try Dealroom → joined alongside existing backers, bringing total funding and grants raised to $40 million.
What's the endgame? The money will fund Phase 2 development of AST-004, a therapy that targets astrocytes — the brain's caretaker cells — to protect neurons after acute injury. The company aims to develop the first drug specifically approved to treat concussion and traumatic brain injury (TBI).
Why now? Astrocyte has completed enrollment in STARFAST, its first Phase 2 trial, testing AST-004 in athletes who suffer concussions playing competitive Australian Rules Football. Topline results are expected this winter.
The randomised, double-blind, placebo-controlled trial measures safety plus blood biomarkers of brain injury and clinical recovery. AST-004 has cleared two Phase 1 safety studies and is also being developed for complicated mild TBI and acute ischemic stroke.
"This is an exciting time for Astrocyte as we reach one of the most important value inflection points in the company's history," said chief executive officer William Korinek.
DeepWork Capital's Jackson Streeter framed the bet on unmet need. "Astrocyte has the potential to develop the first therapeutic drug specifically approved to treat concussion and TBI," he said.
The signal: At $9.5 million, this is a modest raise even for early biotech — it sits near the bottom third of comparable rounds. That makes STARFAST's winter readout the decisive test: strong data could unlock a far larger round, while a miss would leave a thinly funded company facing costly late-stage trials.
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