Foresite Secures $900M for Sixth Life Science Fund

Foresite Capital announced the closing of its sixth fund on Wednesday, securing $900 million in capital for innovative ventures at the crossroads of biotechnology and technology. This healthcare and life sciences investment firm aims to support biotechs focused on precision therapeutics, healthcare delivery, and life science infrastructure. This strategic direction is evident in its portfolio, which includes companies like CG Oncology, RayThera, and Alumis.

Jim Tananbaum, the founder and CEO of Foresite, emphasized that the sixth fund is being deployed in what he describes as “one of the best biotech investment environments” of his career. Founded in 2011, Foresite has since amassed over $3.5 billion in assets under management. According to Tananbaum, advancements in biology, genomics, and artificial intelligence are converging, leading to more effective disease prediction, prevention, and treatment. He believes these technological advancements will result in more efficient investment opportunities across various stages of development.

This latest fund announcement follows one of the most significant biotech launches in history, where Foresite played a major role. In April 2024, Xaira Therapeutics launched with $1 billion to utilize emerging AI technologies for drug development. This innovative approach has attracted major investors, including Sequoia Capital and Lightspeed Venture Partners. Xaira was a product of joint incubation efforts between Foresite Labs and ARCH Venture Partners.

In addition to Xaira, Foresite is also supporting Alumis, which recently filed for an initial public offering (IPO). Although the target raise value has not been disclosed, the IPO aims to advance ESK-001, a second-generation TYK2 inhibitor. This drug is currently in trials for conditions such as uveitis, systemic lupus erythematosus, and psoriasis.

Foresite’s recent fundraising is among the largest in the industry this year. ARCH Venture Partners announced in February 2024 that it was raising $3 billion for its thirteenth fund, as per an SEC filing. Additionally, in January 2024, TCG Crossover revealed its second fund with a $1 billion capital commitment for both private and public companies.