Ouroboros Announces Leading $60M Series A Investment in Cytotheryx to Advance Cell Therapy Platform for Liver Disease
NEW YORK AND SAN FRANCISCO, 12 January 2026 – Ouroboros Family Founders Fund I, LP (“Ouroboros) today announced it will lead a $60 million Series A financing in Cytotheryx, Inc., a preclinical cell therapy company developing transformative treatments for liver disease. The announcement was made during the 2026 Biotech Showcase in San Francisco, the premier investor conference held during JPM Week.
The investment, subject to customary closing conditions, will accelerate multiple programs toward clinical development, expand manufacturing infrastructure, and support regulatory pathway planning. Cytotheryx also announced debt financing to expand its real estate footprint and enable GMP manufacturing capacity.
The transaction reflects strategic alignment between Ouroboros' Community Wellness investment thesis and Cytotheryx's mission to address critical unmet needs in liver disease. Ouroboros selected Cytotheryx based on the strength of its proprietary bio-incubator platform, the company's ability to produce scalable, functional human hepatocytes, and management's execution capability across multiple indications including acute liver failure, chronic liver disease, and rare genetic disorders.
Richard Tannenbaum, Managing Partner at Ouroboros Family Founders Fund, said:
"Cytotheryx represents a high-impact healthcare investment opportunity with substantial commercial potential. The Company has developed a differentiated technology platform that addresses a significant clinical need with limited existing solutions. Our investment reflects conviction in the platform's scalability, the quality of the management team, and the potential to deliver meaningful improvements in quality-adjusted life years for patients with liver disease."
The financing validates continued investor interest in next generation cell and gene therapy platforms despite a challenging biotech investment climate. Cytotheryx's technology portfolio includes a bio-incubator platform to produce liver cells at scale, a bioartificial liver support system for acute liver failure treatment, and universal liver cells for transplantation in patients with rare genetic and chronic liver diseases.
As part of the transaction, subject to closing, Ouroboros will take a board observer seat and provide active strategic advisory throughout the development cycle, consistent with the firm's hands-on approach to portfolio value creation. The investment will be structured using Ouroboros' flexible capital approach, combining growth equity with convertible instruments to align stakeholder interests across the company's development trajectory.
Dr. John R. Swart, CEO of Cytotheryx, said:
"We are pleased to partner with Ouroboros as we advance our cell therapy platform toward the clinic. This financing provides the resources necessary to scale our manufacturing capabilities and progress multiple programs through critical development milestones. Ouroboros brings not only capital but also strategic expertise in building high-growth healthcare companies."
The capital will support expansion of Cytotheryx's production capacity, advancement of regulatory filings, and initiation of clinical programs across its pipeline. The company's Mayo Clinic-derived technology represents a potential solution for thousands of patients with acute, chronic, and rare forms of liver disease who currently have limited treatment options.
About Ouroboros Family Founders Fund I, LP
Ouroboros Family Founders Fund I, LP is a private growth capital sponsor focused on Community Wellness investments. The Fund employs an active management strategy and proprietary "Dequity Funding" approach, providing adaptive capital solutions that combine debt and equity to evolve with portfolio companies' growth stages. Ouroboros provides investments ranging from $5 million to $100 million through convertible notes, junior capital, and growth equity structures. The Fund partners with management teams to drive value creation through operational improvements, digital transformation, technology enablement, brand strategy, and innovation initiatives. Leveraging proprietary AI-driven analytical capabilities and functional expertise, Ouroboros identifies high-potential opportunities aligned with its mission of improving quality-adjusted life years and delivering sustainable returns. For more information, visit www.obgfund.com.
About Cytotheryx, Inc.
Cytotheryx, Inc. is a preclinical cell therapy company leveraging proprietary technology to address acute, chronic, and rare genetic liver diseases. A Mayo Clinic spinout, Cytotheryx has developed a platform that enables the scalable production of clinically relevant, fully functional human hepatocytes for therapeutic use. The company is headquartered in Rochester, Minnesota. For more information, visit www.cytotheryx.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon current expectations and projections about future events and generally relate to plans, objectives and expectations for the development of the business. Although management believes that the plans and objectives reflected in or suggested by these forward-looking statements are reasonable, all forward-looking statements involve risks and uncertainties and actual future results may be materially different from the plans, objectives and expectations expressed in this press release.
Media Contacts:
Alexandra Flynn
press@obgfund.com
Anna Argo
anna.argo@cytotheryx.com
