ARCH Venture Partners Announced Raising $3 Billion for Biotech
ARCH Venture Partners announced that its 12th flagship fund, which will focus on early-stage biotechnology firms, has raised approximately $3 billion.
The fund is the largest to date for the 35-year-old Chicago-based company, which is noted for its consistent investment methodology across market cycles.
Robert Nelsen, co-founder and managing director of ARCH, said that there would be no halt in funding activity, even though public biotech values are significantly lower than last year's peaks.
“Science doesn’t care what markets are doing, and science moves forward,” Nelsen said.
Nelsen stated that the company seeks to invest in startups "with the potential to solve some of the greatest health problems." Intriguing startups are working on breakthroughs in a variety of areas, such as infectious disease, mental health, immunology, oncology, neurology, age-related disease, genomic and biological tools, and methods for reimagining diagnostics and therapies.
According to Crunchbase statistics, ARCH has made eleven announced investments so far in 2018. This month, the firm co-led an $85 million Series C financing for single-cell spatial genomics-focused startup Vizgen. In addition to Nutcracker Therapeutics' $167 million Series C funding round, immunotherapy company Pheast Therapeutics raised $76 million in Series A funding.
ARCH mostly invests in enterprises it co-founds with scientists and businesspeople. Typically, the firm is the lead investor, although it also co-invests with other VCs in larger rounds. Its early and late-stage funding rounds are often substantial by venture capital standards, frequently topping $100 million.
Several ARCH-backed companies, including medication development EQRx, cancer therapy developer Lyell Immunopharma, and genetic medicines provider Verve Therapeutics, have debuted on public markets in recent quarters.
The latest fund represents a significant increase in size. ARCH's previous fund, ARCH Venture Fund XI, which closed in January 2021, raised over $2 billion.
Source: Crunchbase News