Atlas holds up new fund for biotech and IT

The venture capitalist has announced a $950m fund aimed at biotech and IT, but not the internet. Institutionals on both sides of the Atlantic contributed to the fund.

Atlas Venture has announced its latest fund, Atlas VI, which closed at $950m.

The fund will be invested in IT infrastructure companies and biotech companies. A parallel fund for entrepreneurs and other private individuals is also being raised and will invest alongside Atlas VI.

However, Atlas says it has learnt its lesson and will not invest in e-commerce companies. Its last fund, Atlas V, closed at $750m last February and most of it went into internet investments, including high-profile Clickmango, which was fronted by actress Joanna Lumley and collapsed earlier this year.

Atlas says it made back all the money it put into internet investments last year through the sale of Element 14, a semiconductor firm, to Broadcom in October. Last year, Atlas took a total of 14 portfolio companies public and sold a further 11 in trade sales.