Nordic-focused venture firm HealthCap has announced the final close of its multi-stage venture capital fund, HealthCap IV, with committed capital of SEK3bn or $322m.
The fund had an original target of SEK4bn and its modest shortfall suggests even biotech firms are having trouble fundraising in the present environment.
The fund also took longer than expected to reach its eventual close, despite HealthCap’s impressive track record. Founded in 1996, HealthCap’s first three funds have funded 50 companies, nine of which have made IPOs since then.
The firm’s founding partner, Peder Fredrikson, considered the length of time required to finally close the fund to be partly due to the fact that US investors were approached rather than exclusively European investors.
‘This was the first time we went out broadly and internationally so it took longer than we’re used to,’ he explained.
AltAssets research has shown that fundraising in present market conditions is difficult, even for funds focusing on the voguish biotech sector. But those funds that have not met their targets have tended to be firms with less extensive private equity experience.
The fact that HealthCap, with a healthy track record and experienced investment professionals, should also have experienced difficulties and have failed to meet its original target, may point to a modest decrease in interest on the part of investors in biotech investing.
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