Fund briefs, March 2007

ABN Amro spins out venture fund

Forbion Capital Partners has launched as a spinout of the life sciences VC team of ABN Amro Capital. Forbion has raised an initial fund of $260 million, with ABN Amro holding a 25% stake. Coller Capital has underwritten the remainder of the fund. The Amsterdam-based fund, which includes the existing life sciences portfolio of ABN AMRO Capital, which is valued at $166 million, will make investments in new companies and invest in follow-on rounds in its portfolio.

Google funds India VC firms

Google Inc. announced in February that it has invested in two newly formed venture capital firm, SeedFund and Erasmic Venture Partners. Each firm focuses on early stage tech investments in India. India is the first country where Google has made a limited partner investment in early stage funds. The company did not disclose the terms of the investments. “While the rush of large amounts of venture capital into India is well-documented, very little of this trickles down to small firms,” says Samir Sood, Google’s head of corporate development in South Asia. “Our effort is to build this gap by investing in these funds.”

Philly’s MentorTech raises $10M

Philadelphia-based MentorTech Ventures recently held a final close of $11.5 million to invest in early stage IT, marketing technology and medical device companies that originate from the University of Pennsylvania. MentorTech has nine portfolio companies—six of which were incubated at U Penn—that have raised an aggregate of $20 million in follow-on funding. They include Neat Receipt, a scanning solutions provider that raised $5 million in August 2006 from Edison Ventures Fund at an $18 million post-money valuation; PanRaven, a user-generated online content website for travelers that is backed by Draper Fisher Jurvetson; and Merchant Circle, which connects local merchants with customers to compete with nationals chains and is backed by Rustic Canyon Ventures and Scale Venture Partners. MentorTech was co-founder by Managing Partners Boris Kalandar and Michael Aronson.

Abingworth raises large life sciences fund

London-based Abingworth says it has raised the largest life sciences venture fund in Europe. It capped Abingworth Bioventures V at $587 million. It raised $350 million for its previous fund in 2003. The firm, which invests in biotech and medical technology companies in Europe and the United States, expects to make more than 20 investments from the new fund. It is the eighth life sciences fund that Abingworth has raised since it was founded in 1973. The firm has offices in Cambridge, England; Menlo Park, Calif., and Boston.

Radius circles for fund III

Radius Ventures has raised $50 million of a fund with a target of $200 million, according to a recent regulatory document. The New York-based firm raised about $73 million for its second fund in 2002. Radius invests in early stage health care and life science companies.

ERR raises $300M

New York-based RRE Ventures has raised $300 million for its fourth venture fund. RRE typically invests in early stage software, communications and financial services companies. Limited partners include the State of Michigan Retirement Systems, CSIM Private Equity and GKM. RRE’s third fund closed in 2001 with $225 million. —Alastair Goldfisher