Point Judith Capital Partners is a lead investor in Spirius, which is developing a colonoscopy device, and Narragansett Beer.

01:00 AM EST on Saturday, January 14, 2006

BY ANDREA L. STAPE
Journal Staff Writer

Providence venture-capital firm Point Judith Capital Partners recently invested in two area companies, and it's safe to say one of these recipients is not like the other.

Point Judith invested $750,000 in Narragansett Beer.

The company also invested slightly less than $1 million in Spirius Medical Inc. -- which is developing a medical device called Endo-Ease, which makes colonoscopies "safer, faster and more comfortable for the patient," said Gina Raimondo, managing partner at Point Judith.

Although the companies are in completely different industries, Point Judith sees both as having significant growth potential, said Raimondo.

Spirius raised a total of $5.9 million, with Point Judith as co-lead investor alongside Cambridge-based investment firm BioVentures Investors. Raimondo will take a seat on Spirius's board of directors.

The Stoughton, Mass.-based company is expected to add six people this year as it increases marketing of Endo-ease, which employs a corkscrew-like procedure, rather than the traditional air-driven method, said Raimondo.

She said with the number of colonoscopies performed in the country expected to grow dramatically as baby boomers continue to age, Point Judith expects significant growth in Spirius's business. The medical recommendation is that colonoscopies be performed at age 50 and every five years after, said Raimondo.

Spirius is also working on a variety of other flexible medical products it plans to start marketing over the next three to five years.

"We continue to see interesting opportunities in the medical-device industry. Large medical-device companies are looking to add to their product line through acquisitions," said Raimondo.

While Point Judith was eyeing Spirius for investment, the firm was also looking at Providence-based Narragansett Brewery. The beer company recently raised a total of $2.5 million, said Raimondo. Point Judith put in $750,000 as the lead investor. Providence's Cherrystone Angel Group -- made up of local high net-worth individuals -- also participated in the investment round, said Raimondo.

Mark D. Hellendrung, former president of Nantucket Nectars, and a small group of New England investors bought the rights to the Narragansett beer brand from the Pabst brewing organization last June.

Raimondo said Point Judith sees a niche for Narragansett as a reasonably priced regional beer. The company is hoping to leverage Narragansett's prior reputation and brand recognition in New England. In the 1970s, the brand held the dominant beer market share in the region, said Raimondo. Sales fell in the 1980s, and production of the beer moved from Cranston to Indiana, but it never totally disappeared.

Point Judith's managing partner, David Martirano, will join Narragansett's board of directors. The investment firm expects the brewery to add several people over the course of the year, and reach profitability within 18 months.

"We think there's an opportunity to rejuvenate the brand," Raimondo.

astape@projo.com / (401) 277-7356