The early supporter of companies like Achillion Pharmaceuticals Inc. and Intercept Pharmaceuticals Inc. closed a new $500 million fund, the latest indicator that biotech venture capital investing is on the path for a record breaking year.
Clarus Ventures new fund, stated this past Tuesday, will dedicate their efforts on ophthalmology, oncology and rare medical conditions. It shadows funding raises this year of $537 million for Flagship Ventures, $400 million for MPM Capital and $280 million that will be used for atlas Venture
U.S. venture funds are on pace to invest close to $7 billion into biotech businesses in 2015, in reference to data through the first 3 months of the year from the National Venture Capital Association, PricewaterhouseCoopers and Thomas Reuters. That would be the highest ever going past the $6.08 billion this past year. The first quarter represented close to 23% of the entire investment from the year 1995 to 2014.
Clarus, with facilities in San Francisco and Cambridge, Massachusetts, had targeted to earn $375 million for its new fund but was buried with the demand, Managing Director Nicholas Galakatos stated. The investments bring Clarus’s total under management to $1.7 billion.
Plenty of capital is moving into biotech start that startups are able to pick and choose about the potential shareholders they work with, stated Jay Lichter, managing director at Avalon Ventures, which manages $625 million
“Four to five years ago if Joe Blow had money you’d be like, ’Great, I love the guy!’” Lichter stated over the phone. “Now you’re looking for people who can help your business the best, not just provide the capital.”