Catalio Capital Management has closed its fourth venture fund with more than $400 million that will be used in part to launch two new companies.
The healthcare investor has already made 16 investments via the financing vehicle, which is dubbed Nexus Fund IV, according to a July 1 release.
“These new funds will allow Catalio to continue taking advantage of opportunities in a historic buyer’s market in biotech, and to keep distinguishing ourselves as a leading innovative healthcare investor around the globe,” Olga Maltseva, Catalio partner and head of operations, said in the release.
One of those opportunities is creating new companies, with the Nexus Fund IV financing two new startups focused on immunology and inflammation. One is called Rhapsogen and is co-founded by Catalio Venture Partner Jeffrey Ravetch, M.D., Ph.D., whose lab at Rockefeller University investigates antibody-Fc receptor interactions.
The second company, referred to as TBD Pharma, was co-founded by Bert Vogelstein, M.D., who is also a Catalio venture partner. Vogelstein’s lab at Johns Hopkins University aims to better understand the genes and pathways underlying different kinds of cancers.
Beyond new launches, Catalio’s fourth fund was also used to participate in Superluminal Medicines’ series A financing last fall. The artificial-intelligence-based drug discoverer will use the $120 million raised to develop therapeutics that target G protein-coupled receptors.
Nexus Fund IV also helped fuel Alentis Therapeutics in its November series D fundraise. The $180 million will be used to advance Alentis’ pipeline of antibody-drug conjugates.
Catalio said it is also “taking advantage of attractive valuations in late-stage companies” such as Imperative Care. The VC partook in the medical device company’s series E financing last summer.
The investor also co-led a $40 million series A for PinkDx, a women’s health company looking to develop diagnostics for gynecological cancers.
“We continue to see many compelling investment opportunities in this current market, including deals with prospects for near-term liquidity and deals with prospects for long-term growth,” Diamantis Xylas, M.D., Catalio partner and head of research, said in the release. “We are proud to invest in breakthrough biomedical technology companies developing drugs, devices, diagnostics and tools that have potential for broad clinical impact and can enhance the lives of millions of patients around the world while delivering meaningful returns for our investors."
Catalio launched in 2020 and has backed more than 80 private companies with its Nexus funds over the last five years. The third iteration of the Nexus fund clocked in at $381 million, with the second raising $100 million and the first $15 million.