New Capital, Venture Capital

Busy VC 5AM eclipses $125M target for fund to inject capital into existing portfolio, meets goal for sixth biotech fund

Last October, busy VC 5AM pencilled in a $350 million target for its sixth fund. On Wednesday, it was reported that the goal was met, and the venture group’s Opportunities I fund — designed to inject more cash into its existing portfolio — had surpassed its target of $125 million, raising $147 million.

Altogether, the California-based VC — which has traditionally taken about 30 months to burn through a fund — has raised nearly $500 million for the pair of funds.

Kush Parmar

Capital raised for the Opportunities fund will be infused into 10-15 companies, 5AM said. According to a BioCentury report, $5 million – $20 million will be used in each investment.

5AM has already made one investment using Opportunities capital, managing partner Kush Parmar told Endpoints News. 5AM has a meaty portfolio of 60 biopharma companies, and the venture group has a storied history of seeding startups and taking them public.

Money from Fund VI will be used to invest in 15 companies, Parmar said. Each biopharma firm will get between $20 million and $30 million, the report added.

Andrew Schwab

5AM, run by managing partners Parmar and Andrew Schwab, previously raised $285 million for their fifth fund in the spring of 2016 and $250 million for Fund IV from 2013. Recently, 5AM led a $50 million round of funding for hearing startup Akouos.

At this point, a seventh fund is not in the offing, Parmar added.

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Research Scientist - Immunology
Recursion Pharmaceuticals Salt Lake City, UT
Director of Operations
Atlas Venture Cambridge, MA

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