Cancer detection startup Grail to raise whopping $1 billion in Series B

Early-stage cancer detection startup Grail on Friday said it has received indications from investors to raise a massive $1billion in Series B funding, putting it in the league of companies like Facebook, Uber and AirBnB.

In a statement the startup said interest in the company primarily stems from private and strategic investors. Grail intends to raise additional capital in the Series B financing from other investors and has engaged Goldman Sachs as a placement agent in connection with the contemplated additional financing. Grail intends to close the Series B prior to the end of the first quarter.

Grail was started a year ago when life sciences giant Illumina, Inc spun it out. In the past one year the startup has been backed to the tune of $100 million by marquee investors like Bezos Expeditions, Bill Gates, Sutter Hill Ventures, and GV (formerly Google Ventures).

Grail says its mission is to detect any type of cancer through a blood test early when it can be cured. What makes Grail exciting is the fact cancer detection at an early-stage significantly alters the chances of cure.

In the statement, Grail says it combines the power of high-intensity sequencing (ultra-broad and ultra-deep sequencing), leading-edge computer science, and large population-scale clinical studies to enhance the scientific understanding of cancer biology and develop a blood test for early-stage cancer detection.

Grail says it will use the proceeds for continued development and validation of their blood-based test for cancer screening, which will require large-scale clinical trials. Additionally, proceeds will be used to repurchase a portion of Illumina's stake.

"We founded Grail a year ago to enable early cancer detection via a blood-based screening test powered by Illumina sequencing technology," said Executive Chairman, Illumina and current Chairman of Grail Jay Flatley in a statement. "This raise, when completed, will provide Grail the resources to develop its first products and embark on the large-scale trials required to demonstrate the stringent performance requirements of a cancer screening test."