A biotech-focused venture capital firm in Chicago is ready with a new fund as life sciences and biotech continue to find new life in the Windy City.
Arch Venture Partners said Thursday it raised more than $3 billion for its 13th fund. The fund follows a $2.975 billion fund Arch raised in 2022 and $1.9 billion it raised in 2021.
Founded more than 38 years ago, Arch invests in early-stage biotech companies working in infectious disease, mental health, immunology and oncology that work to prevent, detect and cure disease. Early investments in the recent fund include ArsenalBio, Metsera, Mirador Therapeutics and Xaira Therapeutics.
Arch's investment sizes range greatly, investing between $50,000 and $150 million in a single deal.
"We believe [artificial intelligence] and new data-driven insights into biology will help to enable a more preventive, curative and equitable health care system," Arch co-founder and Managing Director Robert Nelsen said in a statement. "Arch intends to continue driving the health care revolution."
While vacancy is up in the life-sciences sector in Chicago and across the country overall, there's reason for optimism moving forward, especially when it comes to AI-based companies. While venture funding is still down in 2024, so far this year 35% of startup investment has gone to AI-related companies, according to Crunchbase.
AI-based startups have been some of the most successful fundraisers in Chicago so far in 2024, including Chicago robotics startup Formic, which closed on $27.4 million in additional funding in June.
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