Deals, Financing

Canaan new venture fund dedicates $200 million for life science investing

Posted on 10 January 2012

Tags: ,

Canaan Partners has announced a new $600 million fund of which one-third will be dedicated to medical device, biopharmaceuticals and diagnostics investing. 

About a quarter of the investments will likely be outside the United States, primarily Israel and India. Most of the investments will be in early and seed-stage companies.

Its most recent life science exit is Advanced BioHealing, which was acquired by Shire for $750 million in 2011. Its healthcare portfolio includes the stroke treatment company CoAxia, spinal disorder company SpineWave, and pulmonary disease company Elevation Pharmaceuticals.

Canaan will invest at any point in a company’s life, and will dedicate anywhere from $1 million to $20 million to portfolio companies. It describes its biopharmaceuticals investments as:

  • Therapeutics and vaccines with a special emphasis on combating infectious diseases
  • Companies with drugs that can be repurposed or reformulated
  • Sectors with reduced development and commercialization risk
  • Platform technologies that address multiple product opportunities

It looks for medical device investments around:

  • Novel, next generation devices to treat major diseases
  • Devices that target chronic diseases and diseases of aging
  • Companies pursuing therapies that are less invasive than current approaches
  • Areas where there is strong consumer demand for therapies

It was diagnostics that are:

  • Tied to specific, personalized therapies
  • Implantable sensors that provide real-time health information
  • Technologies that provide ongoing diagnoses for chronic diseases
  • From companies with an expedited regulatory path and minimized commercialization risk
Print Friendly, PDF & Email

Leave a Reply