ARCH Venture Partners has raised $3 billion for a new fund — one of the largest in the biotech industry, and one the VC firm will use to continue its contrarian investment strategy.
The last few years have tested many venture firms: biotech stocks dropped, valuations shifted, and the flow of fresh capital forced many startups out of business before signs of a recovery emerged. Some biotech investors changed tactics, forgoing investments in startups developing highly experimental scientific platforms in favor of companies with drugs that would soon head into the clinic and, ideally, be ready in a few years for pharma to swoop in with a purchase offer. A few VC firms even adopted a “build-to-buy” financing model in which pharma companies would gain exclusive first rights to acquire a startup with their Series A check.
Not ARCH. The Chicago-based firm is sticking to its long-running strategy, making investments based on the team’s curiosity and frustrations.
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