Arboretum Raises $70.2M Toward New $125M Fund

Early stage health care investor Arboretum Ventures has raised $70.2 million toward a new $125 million fund, representing a significant expansion of the firm.

The partnership, based in Ann Arbor, Mich., released the news in a filing with the Securities and Exchange Commission on Wednesday.

The 8-year-old firm is now investing its second fund and has $170 million under management. It raised its first fund ($24.3 million) in 2003 and its second ($73 million) in 2007, according to Thomson Reuters, publisher of this blog.

According to the firm’s Website, Aboretum’s standard practice is to invest between $1 million and $3 million initially and $5 million to $7 million over the life of a company.

Arboretum has invested in at least 23 companies, of which six have been acquired: HandyLab, Esperion Therapeutics, HealthMedia, Neoguide Systems and VasoNova, according to Thomson Reuters. Two other portfolio companies are in the process of getting acquired: Accuri Cytometers and CardioMEMS, Thomson Reuters reports.