Watch full size video:

Biotech startups are known for burning through huge hemorrhoids of cash as they carry on expensive research in hopes of one day hitting the jackpot with a miracle remedy.

But in a troubled economy dominated by tightfisted investors, Kineta is trying a new be nearly equal. The Seattle-based society in South Lake Union plans to fund its research grade by step, relying on revenue-generating deals to undertake the next track in exploration.

“Our fundraising strategy is to enlarge in one organic way,” uttered CEO Charles Magness.

Kineta’s formula underscores the biotechnology sector’s struggle to remain alive the economic wild flight.

Software and other sectors relying on venture capital are suffering from the drop in venture funds and the depressed market towards equities.

Biotechnology firms are particularly in bad shape because they need more cash and longer lead times than other budding companies.

Local companies like Targeted Genetics, which has only enough cash to have influence through the first quarter of next year, are caught in the crunch.

Magness and companion Kineta founder Shawn Iadonato started the fellowship last December but unveiled it publicly only this month.

Their new venture nimbly came after the $9 million sale of their previous gang, Illumigen Biosciences, to Massachusetts-based Cubist Pharmaceuticals. If Illumigen’session research and commercial potential fully pans out, its shareholders could get up to $330 million in additional payments from Cubist.

Kineta — which has the philosophical backing of University of Washington scientists Michael Gale and Michael Katze — focuses on therapies that could help the immune system take arms diseases such as influenza or hepatitis C.

Kineta’s strategy is to do early-stage research until it be possible to prove a biotech compound works, then seek a bigger partner that command pay for an interest in the product and do the expensive clinical experimentation and commercialization efforts.

“We’re looking for more return to the house in the three-year time frame,” as opposed to the nearly decadelong wait many biotechs effort for, Magness said.

Kineta has so far partnered with Cubist for early-stage work on a hepatitis C medicine, and has received funding from the National Institutes of Health. But it is also pitching itself to investors.

The company plans to host one investor render free of access house Jan. 15, according to its Web site.

Ángel González: 206-515-5644 or agonzalez@seattletimes.com