De Novo closes $300m health tech fund

De Novo Ventures, the Menlo Park, California-based venture capital firm, announced that it had closed its third fund on $300 million (€235 million). It plans to continue to invest in the life-sciences field, primarily in the western United States, as it’s done as both investor and entrepreneur since its founding in 2000. The firm has $650 million under management.

The firm plans to invest the fund over the next three years, said De Novo managing partner Fred Dotzler, with roughly half the investments in early stage medical technology companies, one-quarter in mid-stage, and one-quarter in late stage.

The new fund exceeds the $250 million the firm raised for its second fund in 2004, with which it invested in about 21 biotech and medical device companies. Two portfolio companies from the second fund, Cryovascular Systems and TriVascular, were acquired by Boston Scientific, and Lumend was bought by Johnson & Johnson.

Investors in the last fund, including the University of California, private equity firm Paul Capital, Goldman Sachs and JP Morgan, committed to the new fund as well.

De Novo’s team members, which include Dotzler, Richard Ferrari, Joe Mandato, David Mauney and Jay Watkins, have personally founded or co-founded four companies: CardioThoracic Systems, Gynecare, Integrated Vascular Systems and Origin MedSystems. They have also served as the CEOs of 14 companies.