THURSDAY, APRIL 13, 2023

© 2023 Dow Jones & Company, Inc. All Rights Reserved.

VC FUNDS

Wellington Management Raises $476
Million for Second Biotech Venture Fund
Boston-based money manager aims to be a larger player in life-sciences venture capital
By Brian Gormley
Wellington Management Co., an
investment manager for pensions,insurers and other firms, is seeking
to be a larger player in biotechnology
venture capital.
Boston-based Wellington, which
manages more than $1.1 trillion, has
secured $476 million for its second
biotech venture fund, topping itsfirst such pool, which closed at $394
million in 2019.
Wellington’s biotech venture teamplans to write larger checks and leadmore investments than it did with thefirst biotech fund, said Nilesh Kumar,
co-head of biotech private investments for the firm.
U.S. venture firms that invest inlife sciences rounded up $58.3 billion
in 2022, the second-highest total onrecord after the $81.2 billion raisedin 2021, according to Savills North
America, a subsidiary of U.K.-based
real-estate-advisory firm Savills PLC.
Several venture funds targeting life
sciences have formed in recent years,
and biotech startups are springing up
in cities around the U.S., said Austin
Barrett, leader of Savills’ North American life-sciences practice.
New firms led by experienced investors have closed debut life-sciences
funds recently, including Cure Ventures,
formed by veterans of firms including
Third Rock Ventures; and Dimension,
whose founders previously worked at
Lux Capital and Obvious Ventures.

Verve Therapeutics, which raised capital from Wellington Management, develops geneediting drugs for cardiovascular disease.
PHOTO: GENEVIEVE DE MANIO

Diversified venture firms that invest
in biotech also have rounded up freshcapital, including Canaan Partners,
which recently raised $850 million fortechnology and life-sciences deals.
Venture f irms are scrutinizing
startups more closely than they did
during the investment boom of 2021,
when venture rounds often came
together in weeks, said Rachael Bushey,a partner in the life-sciences groupof law firm Goodwin Procter LLP andco-chair of the firm’s Philadelphia
office. As a result, financings are taking
longer to complete, she added.

“They’re certainly more conservativein the way they’re deploying capital,”
Ms. Bushey said.
U.S. life-sciences startups raised$5.9 billion in venture capital in thefirst quarter, trailing the pace set in2022, when startups collected $43.3
billion for the year, according to market
tracker PitchBook Data Inc.
Wellington raised the larger second
fund partly because startups will likely© 2023 Dow Jones & Co. Inc.
Licensed Use: Post to corporate site
Licensed to: Wellington Management
Expiration Date: 4/21/2024

The Publisher ’ s Sale Of This Reprint Does Not Constitute Or Imply Any Endorsement Or Sponsorship Of Any Product, Service, Company Or Organization.
Custom Reprints 800.803.9100 www.djreprints.com DO NOT EDIT OR ALTER REPRINT/REPRODUCTIONS NOT PERMITTED 2387886

Nilesh Kumar, co-head of Wellington
Management’s biotech private investments.
PHOTO: WELLINGTON MANAGEMENT

need bigger chunks of cash amid thebroader downturn in the venture-capital sector, said I-hung Shih, who
co-heads the firm’s biotech private
investments with Dr. Kumar.
The firm also aims to play a largerrole in shepherding biotech startups
to success. It previously backed
biotech startups through a diversified
private-equity fund before raising its
first venture fund for the sector.

Wellington used that first venture
fund to back 35 companies, Dr. Shihsaid, including Verve Therapeutics
Inc., a developer of gene-editing drugs
for cardiovascular disease that went
public in 2021.
For the new venture fund, Wellington’s biotech venture team is planningroughly 25 to 30 deals, Dr. Kumar said.
Wellington’s biotech venture teamdraws on resources from the firm’s
public-market investment practice togain a wider perspective on the competitive landscape and the types of drugs
large pharmaceutical companies areseeking to acquire, Dr. Kumar said. This
helps the venture group evaluate deals
and advise portfolio companies.
“We’re able to help shape companies’
strategies over time,” Dr. Kumar added.
Wellington is billing itself as a
one-stop shop for startups looking fora supporter over the long term, given
its perspective and experience, Dr. Shihsaid. “They understand that Wellington
is willing and will be there as they
continue to grow,” she added.
In November, Wellington led a $115
million Series B round of financing for

I-hung Shih, co-head of Wellington
Management’s biotech private investments.
PHOTO: WELLINGTON MANAGEMENT

MBX Biosciences Inc., a Carmel, Ind.based biotech company developing
treatments for endocrine disorders.
MBX Chief Executive Kent Hawryluk
said Wellington’s backing boosts hiscompany’s credibility and opens more
doors as it considers future funding.
“They understand management andwhat goes into building a successful
biopharma company,” Mr. Hawryluk
said.