ARCH Venture closes $350m Fund VI

The Chicago venture capital shop’s newest vehicle is geared toward seed and early stage investments in life sciences, physical sciences and information technology companies.

Chicago-base venture capital firm ARCH Venture Partners announced a final close for ARCH Venture Fund VI on $350 million (€283 million).

 

ARCH’s previous fund closed on $380 million back in 2000.

 

Fundraising for the newest vehicle began in January 2003. About half of the investors were based in the US while the other half came from abroad. New investors in Fund VI accounted for almost 50 percent of total commitments. Returning LPs included State Farm, Dow Employee Pension Fund and Welcome Trust, while Alpinvest, University of California and UTIMCO came aboard as part of a new contingent of investors.

 

ARCH Fund VI three-to-five-year investment cycle will include between 22 and 25 investments. Single-round fundings range up to $5 million, but ARCH may invest up to $20 million over the lifetime of a portfolio investment. The firm invests in companies in life sciences; physical sciences including semiconductors, nanotechnology and electronic instrumentation; and information technology with a focus on communications. ARCH has made one investment so far with the new fund in nano-biotechnology company Senzyme.

 

ARCH’s Fund VI brings ARCH Venture Partners’ total capital under management to more than $1 billion. Founded in 1986, the firm is a spin-off from a technology commercialization initiative originated by The University of Chicago.