Flagship Pioneering Raises $1.1B; Arch Venture Partners Gets $1.46B.

While Flagship Pioneering will use the money for sustainability and biotech, Arch Venture will invest in early-stage biotech companies.

Arch Venture Partners raised $1.46 billion across two new funds, ARCH Venture Fund X and ARCH Venture Fund X Overage.

“The healthcare revolution will be accelerated by the changes that are happening now and we are excited to continue to invest aggressively in risk-takers doing truly transformational science,” said co-founder and Managing Director Robert Nelsen. (BioSpace)

Arch vs. COVID-19

Several Arch-funded companies are engaged in the battle against the coronavirus.

Vir Biotechnology, Alnylam Pharmaceuticals, VBI Vaccines, Brii Biosciences, and Sana Biotech are currently working to develop COVID-19 therapeutics.

Quanterix is developing technology that can help with clinical testing needs and support clinical trial continuity.

Twist Biosciences is advancing genomic and gene engineering tools used in COVID-19 therapeutic and vaccine development

Bellerophon’s inhaled nitric oxide (iNO) delivery system recently received emergency expanded access approval from the Food and Drug Administration for the treatment of COVID-19.

The virus triggers heightened investor interest in biotech

It is significant that not one, but two venture firms have managed to raise biotech-focused, billion-dollar-plus funds at this time of economic upheaval.

Biotech companies are receiving a lot of media and political attention as a fallout from the coronavirus. Unsurprisingly, investors have readily loosened their purse strings to support investments in biotech through the two VC firms.

Flagship Pioneering accomplished the other big raising. (TechCrunch)

Flagship raises new $1.1 billion capital pool

Flagship describes itself as an institutional innovation enterprise focusing on pioneering innovations. It also launches and advances new companies to develop and commercialize these innovations.

It typically develops startups that leverage biotech innovation to provide goods and services that improve human health and promote sustainable industries.

Flagship said in respect of the latest raising: “We’re honored to have the strong support of our existing Limited Partners, as well as the interest from a select group of new Limited Partners, to support Flagship’s unique form of company origination during this time of unprecedented economic uncertainty.”

Flagship said it raised the latest fund for its Flagship Labs unit. It said the fund will operate alongside separate Flagship funds totaling $1.08 billion raised in 2019 to support the financial needs of Flagship-originated companies after they spin-out from Flagship Labs and enter their growth stage.

Moderna Inc. (NASDAQ: MRNA), a Flagship company, is conducting the first-ever clinical trial for a vaccine targeted at the novel coronavirus that causes COVID-19.

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