ARCH announces largest fund yet, raising $1.85B to back mental health, cell and gene editing approaches

On January 28, 2021 Endpoint News reported, ARCH announces largest fund yet, raising $1.85B to back mental health, cell and gene editing approaches. Read the article below.

Nearly a year ago, as the pandemic encroached and the stock market cratered, Flagship and ARCH Venture announced three mega-funds worth a combined $2.6 billion. They wanted, ARCH’s Bob Nelsen said, to restore confidence “that there was money out there and a lot of it” to invest in biotech.

Since then, the stock market has returned — almost frighteningly so — and Nelsen has kept raising and spending cash. On Thursday, he announced a new fund, worth $1.85 billion. It’s the largest pot yet for a VC famous for its deep pockets.

This time, he said, there’s no message other than what they’ve been saying for years.

“It’s just a continued confidence in basic science, and innovation that’s happening in healthcare; it’s really a revolutionary time,” he told Endpoints News. It’s “keeping your head down and continuing to do what you do.”

Historically, ARCH has been known for backing huge plays with record investments, most recently launching Resilience with $800 million and a plan to rethink how all biologic drugs are made. Another major bet, the infectious disease startup Vir, may yet play a major role in the pandemic, leading one of the major efforts to develop a neutralizing antibody for Covid-19.

In announcing the new fund, Nelsen ticked off a range of areas the firm will look to pursue, most of which ARCH has previously pushed forward, including gene editing and cell therapy.

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