Welcome to Chicago Inno's The Beat, a twice-a-week look at the people, companies and ideas that are shaping Chicago’s innovation economy. Want more startup deals, exclusive insights and business intelligence to power your workweek? Become an Inno+ member today.
The Big One: Chicago VC firm closes $3 billion fund to back biotech startups
Arch Venture Partners has raised its latest fund of more than $3 billion — its 13th fund to date. The Chicago-based biotech-focused venture capital firm's newest fund follows a $2.975 billion fund raised in 2022 and $1.9 billion 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 aiming 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."
READ MORE: Chicago biotech-focused VC firm Arch Venture Partners closes $3 billion fund
FranShares ready for an office of its own
Aimed at making investing in franchises as easy as investing in stocks and mutual funds, FranShares has seen solid growth in the past year, capped off by a $4.1 million seed funding round announced in July. The oversubscribed seed round brings the startup's total capital raised to $5.8 million.
Now the startup that wants to give more investors the opportunity to become franchise owners needs more room to grow.
FranShares founder and CEO Kenny Rose recently told Chicago Inno that he's initiated an office search for his startup. Rose's two main reasons for wanting a permanent office are for accountability and camaraderie.
READ MORE: Why Chicago startup FranShares is following other CEOs in shifting away from remote work
Zing Health lands $140 million
Zing Health, a Chicago company that offers a health insurance option to people 65 and older who are typically underserved by traditional insurance models, announced a new raise of $140 million this week.
Co-founded by Dr. Eric Whitaker and health care executive Garfield Collins in 2019, Zing Health was founded as a way to reduce health care disparities among historically underserved populations by offering Medicare Advantage HMO plans to seniors in Cook County.
The company has since expanded to more states across the country and hopes to expand further following the latest funding round.
READ MORE: Chicago insurance startup Zing Health lands $140 million raise
Sign up for Inno’s free twice-weekly newsletter to receive the latest innovation news impacting Chicago
