Artificial Intelligence

DeepCyte Raises US$1.5M to Use AI and Single-Cell Analysis to Predict Drug Toxicity

A new approach examines how individual cells respond to drugs, aiming to identify risks earlier in development.

Updated

April 15, 2026 6:01 PM

Close up of a capsule blister pack. PHOTO: UNSPLASH

DeepCyte, a startup in the drug development space, is focusing on a long-standing problem: why drugs that appear safe in early testing still fail in clinical trials or are withdrawn later due to toxicity. DeepCyte has launched with US$1.5 million in seed funding to build tools that detect and explain the harmful effects of drugs at much earlier stages.

The startup’s approach focuses on how individual cells respond to a drug. Instead of analysing cells in bulk, it studies them one by one. This helps capture differences in how cells react, which are often missed in traditional testing methods.

Drug toxicity remains one of the main reasons for failure in drug development. Methods such as animal testing and bulk cell analysis do not always reflect how human cells behave. This gap has pushed the industry to look for more reliable and human-relevant ways to test drug safety.

DeepCyte combines cell-level data with artificial intelligence. Its platform, MetaCore, studies what is happening inside individual cells by capturing detailed molecular information. This data is used to build large datasets that can train AI models.

Additionally, the company has developed an AI system called DeeImmuno. It is designed to predict whether a drug could be toxic and identify the biological reasons behind it. In internal testing on 100 drugs, the system identified different types of toxicity and their underlying mechanisms with a reported accuracy of 94 percent.

The focus on explaining why a drug is toxic, not just whether it is, reflects a broader shift in the industry. Regulators such as the U.S. Food and Drug Administration and the European Medicines Agency have been encouraging methods that rely more on human cell data and clearer biological evidence. The seed funding will be used to develop and scale these tools. The company aims to help drug developers make earlier decisions, which could reduce costly failures in later stages. Whether tools like this become widely used will depend on how they perform in real-world settings. For now, DeepCyte’s approach highlights a growing effort to make drug testing more precise by focusing on how drugs affect cells at the most detailed level.

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Operations & Scale

The Coffee Shop Owner’s Guide: 5 Essentials Before You Start Brewing

Because running a café takes more than just a good roast

Updated

April 13, 2026 3:18 PM

A cup of espresso being brewed. PHOTO: UNSPLASH

Coffee has grown beyond being just a drink—it’s part of culture, connection and even a daily productivity hack. Think about it: friends catch up over cappuccinos, professionals start the day with a quick espresso and students practically live on iced lattes during exams. It’s woven into routines, with two-thirds of American adults consuming coffee on a daily basis and averaging around three cups per day. That is much higher than other beverages like tea, juice and bottled water. It is therefore no surprise that the global coffee shop industry is projected to reach about US$123.43 billion by 2030. For entrepreneurs, that makes coffee shops more than cozy corners with good aesthetics. They’re a real business opportunity. But before you open a coffee shop, here are five things you should know.

1. Coffee shop location matters more than you think

Like any small business, the success of your coffee shop often hinges on where it is. Coffee may have broad appeal, but daytime foot traffic and visibility can still make the difference between a busy café and one that struggles to stay afloat. Opening near universities, office parks, co-working hubs or residential neighbourhoods with young professionals can instantly give you a strong stream of potential customers.

That said, choosing a coffee shop location is not just about picking a busy area. You also need to know your target market. For example, opening a third-wave specialty coffee shop in a low-income neighbourhood may not work if your prices are beyond what local residents want to pay. The same café might perform much better in a more affluent or fast-changing district.

Competition matters a lot in the equation too. Walk around the area and see what other coffee shops are doing. The goal is not always to avoid competition but to find a gap in the market. If nearby cafés focus on quick grab-and-go drinks, there may be room for a slower, more community-driven coffee shop built around hand-poured brews and a relaxed atmosphere. Simply put, your shop’s exact street address could make or break your business.

2. In the coffee business, customer experience matters

It’s important to understand this early on: running a coffee shop is not just about serving coffee. Customers today have endless options, from making coffee at home to buying from major chains like Starbucks. What brings them through your doors is often the overall experience.

According to a report by Salesforce, 91% of customers say they’re more likely to make another purchase after a great service experience. That means your café needs to give people a reason to stay, come back and recommend it to others. Maybe it is the interior design, the playlist that feels just right, the reliable Wi-Fi, the convenient charging points or simply the way the space feels. Remember, good coffee gets people in once, but a strong customer experience gives them a reason to return.

3. Know your coffee shop costs before you make your first brew

Opening a modest-sized sit-down café in the U.S. can cost anywhere between US$100,000 and US$350,000. The final number depends on your location, your coffee shop concept, your equipment and how much you spend on the fit-out and interior design. Beyond those startup costs, your monthly expenses—like rent, utilities, staff salaries and coffee bean purchases—will play a huge role in whether your business survives the first year.

Profit margins in coffee retail are thinner than new owners expect. On average, small to medium-sized coffee shops make a 3-10% profit margin, which means efficiency is key. Selling higher-margin items like snacks, light bites and pastries can help lift revenue. A US$2 slice of banana bread, for example, may cost cents to make but can still raise the average spend per customer.

You also need to factor in seasonality when planning your coffee shop revenue. For instance, in warmer months, there is usually higher demand for iced and cold beverages. Many cafés respond by introducing cold brew, iced teas, smoothies or limited seasonal drinks to their menus. That helps keep sales steady and protects the average ticket size throughout the year. At the end of the day, running a café is just as much about managing the numbers as it is about serving great coffee.

4. Baristas are your frontline brand ambassadors  

A barista isn’t just someone pulling espresso shots; they’re often the face of your coffee shop. A warm smile, remembering a regular’s order or sharing a fun fact about the beans can create the kind of connection that keeps customers coming back.

As specialty coffee culture boomed in the early 2010s, baristas became more than brewers—they are now guides and storytellers. By talking about coffee origin, processing methods, bean varieties and roast profiles, they help customers understand what they are buying and why it matters. That mix of knowledge and personality can have a real impact on customer loyalty.

That’s why hiring and retaining great baristas is one of the smartest investments a café owner can make. Beyond competitive pay, creating a workplace where people feel valued also matters. Training, room for creativity and a sense of pride in the craft can go a long way in helping staff stay engaged.

5. Coffee shop marketing must go beyond “Opening Soon” posters  

Opening a coffee shop is exciting, but opening the doors and hoping people walk in is not enough. Good coffee shop marketing today is less about spending big and more about telling a story people want to follow. Well before you launch, start building hype and share behind-the-scenes snippets on Instagram, whether that is taste-tests, design decisions or even the messy parts of setting up the space. That kind of content feels real and helps build anticipation.

Once your café is open, think beyond basic promotion. Loyalty programs, collaborations with local businesses or even hosting events like poetry nights, art exhibits or coffee cupping sessions can all help bring people in. Social media is useful here too; it is not only a place to post latte art but also where you show what your brand stands for. Do you focus on sustainability? Do you source coffee ethically? Do you support local artists? Those details humanize your brand and make your café more than just a pitstop for caffeine.

Brewing it all together

Overall, opening a coffee shop blends passion, community and entrepreneurship. It also requires clear thinking and strong business decisions. From choosing the right location and creating a memorable customer experience to managing costs and building a great team, success takes more than just brewing good coffee. If you treat your coffee shop as both a craft and a business, you give it a much better chance of becoming a local favourite.