Ann Arbor health care venture capital firm Arboretum Ventures says it has closed its fifth fund with capital commitments of $250 million, increasing the firm’s capital under management to more than $700 million.
The company says it believes Arboretum V to be the largest venture capital fund ever raised in Michigan, topping the $220 million fund the firm raised in 2015.
The fund will be managed by managing partners Jan Garfinkle, Tim Petersen, and Dr. Tom Shehab, with the assistance of long-time senior team members Paul McCreadie, partner and COO, and Marcy Marshall, CFO.
“Over 70 percent of our commitments come from investors who have invested in one or more of our previous funds,” says Garfinkle. “We are also excited to have a new set of limited partners that include two hospital systems and one healthcare insurer. We believe this fund is ideally sized to execute on our investment strategy, which has remained consistent over time.”
Shehab says, “It has been busier than ever at Arboretum the last 18 months, as we completed five new company investments from Arboretum IV. On the exit side, two Arboretum companies were acquired by Boston Scientific – NxThera (for up to $406 million) and nVision (for up to $275 million).”
Also, molecular diagnostic platform company NeuMoDx signed an agreement to be acquired by QIAGEN for $306 million, and last fall SI-BONE went public on the Nasdaq Stock Exchange.
“The opportunity set within healthcare remains as strong as ever, given the aging of the baby boomers combined with increasing pressures to address rising healthcare costs through innovation,” says Petersen. “We look forward to investing Arboretum V in companies that improve healthcare quality while also removing excess cost from the system.”