New Capital, Venture Capital

5AM partners set a wakeup call for biotech Fund VI, shooting for a record $350M

The numbers keep on getting bigger in biotech investing, and 5AM Ventures isn’t about to buck that trend.

Kush Parmar

It’s time for the busy VC to raise Fund VI, and 5AM has jotted down $350 million for the target in an SEC filing — though they would likely be willing to take more.

Andrew Schwab

That figure positions the VC at a new high water mark, following a $285 million Fund V in the spring of 2016 and the $250 million Fund IV from 2013. It takes about 30 months for 5AM to run through a fund, and there’s no reason to think that this one will be any different.

The team includes two managing partners — Kush Parmar and Andrew Schwab — with offices on both coasts.

The biotech industry has been seeing the amount of cash going into early rounds swell steadily over that same period of time, as companies get more cash to drive the growth of new teams and field more pipeline projects.

5AM has a big portfolio, with 57 biotechs listed on the page. The venture group has a long history of seeding startups and taking them through a series of IPOs, which has given the outfit a strong rep that will likely play well with institutional investors. It’s also had a few duds, like Epirus and KaloBios (now Humanigen), but nobody scores 100% in biotech.


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