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Venture fundraising has been tough recently, even for firms with strong track records. Foresite Capital, despite 47 IPOs, 28 M&As, and 58 FDA-approved drugs, took two years to raise its sixth fund. 💸 Foresite’s sixth fund closed at $900 million, nearly matching its previous $969 million fund. They bridged the gap by bringing in new LPs, including family offices from Asia and the Middle East. 🌏 The firm is already investing from this fund, backing innovative companies like AI drug discovery startup Xaira Therapeutics and biotech company Latigo Biotherapeutics, Inc. 🧬🤖 How do you think the integration of AI and genomics will shape the future of healthcare investments? 💡 #VentureCapital #Fundraising #HealthcareInnovation #AI #Genomics #Biotech #Investment #MedTech #Startups #LifeSciences

📣 #Healthcare and #LifeSciences #startups: there's a new #VC #fund from Regeneron, led by Michael Aberman and Jay Markowitz. From the article: "Our goal is to cultivate an ecosystem where the next generation of #biotech companies can thrive, drawing on the lessons learned and successes achieved at Regeneron and throughout our careers,”Michael Aberman said in the release. “Together, we will strive to identify and support groundbreaking advancements that push the boundaries of what's possible in #science and #medicine.” Andrew Hwang Dylan Ozyjowski Ramesh Sethuraman

Private #biotech funding rises as venture firms deploy cash! 26 companies closed private fundraising rounds worth more than $100 million in the first quarter, according to data from HSBC Innovation Banking shared with BioPharma Dive. While venture rounds have grown in size in recent years, $100 million is typically viewed as a significant threshold. 8 of those 26 biotechs were #cancer drugmakers, while 5 were startups developing programs for #neurological conditions, said Jon Norris, a managing director with HSBC. Overall, biotechs across the U.S. and Europe raised $6.8 billion in #venturecapital funding during the first three months of the year, nearly $1 billion more than the most active quarter in 2023. Venture firms are continuing to seek out surer bets, though. While some seed and Series A rounds are being built around more cutting-edge technology, many more are for tried-and-true management teams working to improve existing platforms, like #antibody-drug conjugates or #radiopharmaceuticals. Among the most active investors currently are OrbiMed, ARCH Venture Partners, GV (Google Ventures), RA Capital Management and Cormorant Asset Management, LP, according to William Blair. Several life sciences investment firms have closed new funds in the first quarter of 2024, including TCGX, Scion Life Sciences and Goldman Sachs — a sign of industry interest. Biotech #IPOs also rebounded last quarter to pre-pandemic levels! Initial public offerings by #biotechnology companies reached pre-pandemic levels during the first quarter, with nine #drugmakers collectively raising more than $1.3 billion, according to BioPharma Dive data. The sum is more than three times the $375 million in total proceeds from biotech IPOs in the first quarter last year, and roughly matches the first quarter total in 2020. Six of the nine biotechs to price IPOs between January and March raised $100 million or more. The largest two offerings, from CG Oncology and Kyverna Therapeutics, raised $380 million and $319 million respectively.

Regeneron builds new venture arm with $500M commitment to invest in biotech and beyond Regeneron is joining its pharma peers in the venture investing sector, committing up to $500 million over the next five years for its new private financing arm. The New York pharma unveiled Regeneron Ventures on Monday with Jay Markowitz, M.D., and Michael Aberman, M.D., at the helm, both of whom were previously executives at Regeneron. Markowitz said in a release that the outfit would be “agnostic to therapeutic area, technology and stage of development.” That wide-ranging view includes companies beyond drug development, including “devices, tools and enabling technologies.” Markowitz joins from Arch Venture Partners, where he was a senior partner and helped launch three companies. He was a senior vice president at Regeneron from 2017 to 2020 after more than 16 years in public investing roles, including eight at T. Rowe Price. Aberman spent seven years at Regeneron, including as the senior vice president of investor relations and strategy. He went on to lead a couple of biotechs: Quentis Therapeutics and XenImmune Therapeutics. “Our goal is to cultivate an ecosystem where the next generation of biotech companies can thrive, drawing on the lessons learned and successes achieved at Regeneron and throughout our careers,” Aberman said in the release. “Together, we will strive to identify and support groundbreaking advancements that push the boundaries of what's possible in science and medicine.” Regeneron joins nearly all of its Big Pharma peers in having a venture capital wing. Sanofi, Ei Lilly, Bristol Myers Squibb, Astellas and Novartis were some of the largest corporate investors in 2023, according to a tally by HSBC. Not only do the firms act as run-of-the-mill venture investors, but they can also serve as the eyes and ears of their respective pharma companies in the hunt for potential partnerships or deals.

Atlas Venture unveils a new $450M fund targeted at biotechs 2 years after its last Massachusetts-based VC shop Atlas Venture has drawn together another $450 million fund to be channeled toward innovative biotechs. The firm’s fourteenth fund is the same amount to the cent as Atlas’ thirteenth fund back in March 2022. The firm has been busy since then, launching 16 new biotechs and recruiting “approximately 100 executive leaders across its portfolio” in the past two years, it explained in a Dec. 5 release. Atlas’ companies have also kept up the pace in those years, with the firm pointing to Eli Lilly’s acquisition of Versanis Bio last year, GSK paying $1 billion for Aiolos Bio in January and Novartis paying the same amount for Mariana Oncology in May.  Meanwhile, Disc Medicine, Korro Bio, Q32 Bio and Third Harmonic Bio have gone public, Atlas noted. “Core to Atlas is a disciplined approach to our firm, funds, and portfolio,” the company said in the release. “We believe deeply in the power of a focused venture creation strategy, building biotech companies across the spectrum of disease areas, modalities, and business models.” “We are grateful to work with a long-standing group of [limited partners] who have embraced our model with tremendous support in Fund XIV,” Atlas added. https://lnkd.in/eHHTEH94

Discover 10 big pharma and biotech companies that have spun out their own venture capital arms to invest in startups in the industry. #venturecapital #veteranventures

If you’re a biotech start-up looking for funds in 2024, either you’re lucky enough to raise a nine-figure venture round, or you’re scrounging for what’s left over. In the first quarter of this year, biotechnology and pharmaceutical companies collectively raised $5.9 billion across 209 rounds, according to the latest Venture Monitor report from PitchBook and the National Venture Capital Association (NVCA). The dollar amount is an increase from the 2023 quarterly average, but it’s spread across fewer deals. The total deal count is the lowest since the third quarter of 2018, during which PitchBook recorded 202 venture rounds. Before that, only 2016 saw so few deals. The dip is especially low among early-stage deals. Industry watchers say investors are still risk averse and, consequently, prioritizing investment in companies whose drug candidates are farther along in development. “I think the bar is still high,” says Katie Walsh McCarthy, chief innovation officer at the Halloran Consulting Group, Inc. “Investors have really reestablished their expectations. They do want to ensure there’s a reasonable amount of risk.” Those start-ups that have managed to buck the trend and raise “mega-rounds”—$100 million or more—have a few things in common. For one, investors are still likely to back experienced management teams. Investors are also more inclined to fund clinically validated science—that is, drug candidates that have been tested in humans. But Carolina Alarco, founder and principal of the consulting firm Bio Strategy Advisors, LLC and an angel investor, worries that this dynamic creates a secondary problem: that biotech may be “losing its edge” by deprioritizing newer programs. “Experienced CEOs and founders normally gravitate toward proven technologies and platforms to have the most likelihood of success,” Alarco says. “Young entrepreneurs and scientists, they have the true innovation. They have the real treatments that are going to come out in 10 or 20 years. I think we’re doing a disservice to science by not opening up some funding to these highly innovative approaches.” More detail in my latest for C&EN: https://lnkd.in/emcUD7aW

🔊 Canaan Partners, a venture capital firm, recently secured over $100 million, adding to the $850 million fund announced last year. 🔊 This boost in capital, according to General Partner Julie Grant, is earmarked for biotech investments, supplementing the firm's existing strategy of investing in early-stage companies in the biopharma sector. With this injection, Canaan's total raised funds since early 2023 now exceed $1 billion, with a significant portion allocated to healthcare ventures. In addition to financial growth, Canaan has expanded its team with the addition of Uwe Schoenbeck, Ph.D., a former senior executive at Pfizer. Schoenbeck's expertise in bridging early science and biotech startups aligns well with Canaan's investment focus. While Canaan has yet to explore the metabolic disease arena, Schoenbeck anticipates targeted investments in the broader cardiometabolic space in the future. Canaan's recent investments include contributions to biotech raises for Nocion Therapeutics, Inc. and Alterome Therapeutics, Inc, showcasing its commitment to advancing innovative healthcare solutions. Full article: https://lnkd.in/ecpRi8fy

Discover 10 big pharma and biotech companies that have spun out their own venture capital arms to invest in startups in the industry. #fundraising #markets #privateequity #smallbusiness #venturecapital

Biotech Venture Capital Market: Signs of a Thaw for 2024? Here's the good news: private funding for early-stage biotech startups is on the rise in the first quarter of 2024. This suggests renewed investor confidence in the sector, particularly compared to the slowdown of 2023. Key points to consider: 1) Big numbers: A significant jump in the number of companies raising over $100 million in private rounds indicates a willingness to invest in promising early-stage ventures. 2) Focus on established areas: Investors are still prioritizing "surer bets" – companies developing drugs in areas like cancer and neurology, or those with experienced management teams working on proven technologies. 3) Active investors: Established VC firms like OrbiMed and Arch Venture Partners are leading the charge, with new funds being raised by players like Goldman Sachs. This signals strong industry interest. 4) Preclinical and Phase 1 focus: Funding is flowing towards companies in the early stages of drug development, suggesting a long-term outlook from investors. 5) Return of IPO buyers and M&A rebound: Promising clinical data is still attracting interest for initial public offerings (IPOs), a positive sign for late-stage biotechs. Blockbuster deals brokered at the end of last year included AbbVie’s $8.7 billion acquisition of Cerevel Therapeutics and $10.1 billion buy of ImmunoGen, Roche’s $7.1 billion purchase of Telavant and Bristol Myers Squibb’s $14 billion deal for Karuna Therapeutics. Overall, this uptick is a welcome change from 2023, when companies struggled to secure funding and relied more on existing investors. A word of caution: While the trend is positive, some experts warn against replicating the aggressive investment pace of 2021. We need a balance between innovation and calculated risk. Stay tuned for further updates! I'm also happy to answer any specific questions you may have about the biotech investment landscape. What are your thoughts for 2024? Leave a comment below Claus Johansen Rohan Gidvani Nandita Shangari Nick Frame Jessica Davis Sam Kessel MD, MBA Tej Panesar Jacob Masters Michael Salako PhD MBA John Xue #biotech #investment #investor #vc #drug #discovery #healthcare #market #business #ipo _________________________________________________________________________________ Biotech investor or innovator? We assist investors unlock potential by assisting with due diligence and companies refine strategies for success and fundraising. Let's chat! Have you enjoyed this? Recommend Repost ♻️ if you find it useful Follow me, hit the 🔔 Adrian Rubstein