Versant raises $500m for Fund IV

The California-based firm, which invests in seed and early stage healthcare companies, has brought its capital under management to a total of $1.6bn with the closure of its fourth fund after two months in the market.

Early-stage healthcare firm Versant Ventures has closed its fourth fund on $500 million (€323 million) for seed and early stage investments.

Versant began fundraising in June without the help of a placement agent and closed the fund on 31 July. The majority of limited partners were investors in the previous fund, managing director Brian Atwood told PEO.

The firm’s nearly fully invested previous fund closed on $400 million in December 2005.

“We’ve got a couple more slots left in the current fund and we’ll need to fill those up; we expect we’ll be working on the new fund this fall,” said Atwood.

Fund IV will make approximately 30 to 35 investments in medical device, biotech and pharmaceutical companies. A limited number of later-stage investments may also be made.

“Our general preference is working with entrepreneurs when they’re just beginning to put together their company usually pre-business plan or during business plan development,” said Atwood.

Investments will range from a few hundred thousand to $20 million over the life of a company.

“The firm was started by a group of folks who had very strong experience either starting their own companies and or being CEOs of start-up companies and so it’s really what we know how to do best,” Atwood said.

Menlo Park and Newport Beach, California-based Versant has more than $1.6 billion and 75 portfolio companies under management.