Durham venture capital firm Pappas Ventures is launching its sixth fund.
A securities filing shows plans to raise $250 million – capital that will be deployed to life science innovators.
In an interview, Pappas Ventures founder Art Pappas declined to talk specifics about the raise, citing legal concerns. But he did say the firm’s prior fund, Fund V, is still active, meaning “we’re in no rush” to close Fund Vi.
“We’re pleased with where we are,” he said.
The firm has “one, maybe two” more deals to go in Fund V, “and the fund is performing spectacularly,” Pappas said. It’s had multiple acquisitions and initial public offerings.
It’s an “interesting” time to be in investing, as valuations have spiked in recent years. Pappas is not overly concerned, however.
“We’re in this business as 10-year funds, therefore in our case, we weathered three of these big market cycles and have been very successful at managing valuations,” he said. “I do think there will be pressure for a while longer.”
The firm’s focus continues to be on investing in therapeutics, though it does have a separate, broader specialized fund that targets opportunities in Asia. That fund is something Pappas likes to brag about. The firm is close to announcing two deals out of the fund, he said.
As for Pappas Life Science Ventures VI, the securities filing was published March 14. It has yet to raise a single dollar. The firm anticipates paying $1 million in finders’ fees, according to the filing.