RA Capital gathers $880m for third venture fund

RA Capital has closed its third venture fund at $880 million.

RA Capital has closed its third venture fund at $880 million. The fund’s limited partners include endowments, foundations, hospital systems, and family offices. RA Capital invests in public and private healthcare and life science companies that are developing drugs, medical devices, and diagnostics.


BOSTON, Oct. 06, 2021 (GLOBE NEWSWIRE) — RA Capital Management, LP (“RA Capital”) has held a first and final closing of its third venture fund, RA Capital Nexus Fund III, L.P. (“Nexus III”). Significantly oversubscribed, Nexus III successfully raised $880 million from existing and new investors, including from a select group of endowments, foundations, hospital systems, and family offices.

Similar to its predecessor funds, Nexus III is expected to participate in substantially all investments in private companies made by RA Capital alongside its evergreen fund, which invests in public and private biotech companies in accordance with the firm’s primary investment strategy. By expanding the firm’s private investment capabilities, RA Capital can continue to reliably support private companies with value-add capital, particularly during volatile periods in the public markets.

“We appreciate the strong enthusiasm from our limited partners for the Nexus funds, and from innovators who partner with us to build their companies from a seed-stage idea to a global enterprise supported by RA Capital through the IPO and well beyond,” said RA Capital Managing Partner and Portfolio Manager Rajeev Shah.

The Nexus funds are a strategic extension of RA Capital’s investment platform, enabling RA Capital to take large positions in high-conviction investments. RA Capital pursues a multi-stage approach, spanning new company formation (including companies built from scratch through its RAVen incubator), traditional venture financing, and public equity.

“Our systematic approach to mapping the breadth and depth of the therapeutic landscape helps us work with companies to identify the most promising areas for their technologies. And our RAVen incubator helps our companies execute their vision faster, better, and cheaper so that we can quickly get to the clinic,” said Managing Director Andrew Levin.

Since 2012, private investments have been an integral element of RA Capital’s overall strategy. From 2012 to date, RA Capital has invested in over 218 private companies, 128 of which have IPO’d or have been acquired. For some companies, staying private and independent for longer is the right approach to building value, and the launch of Nexus III allows RA Capital to help its companies pursue the financing strategy that makes most sense for them.

“As a multi-stage fund, we have the ability to partner with companies at every stage of their development, combining our scientific and operational expertise with our knowledge of the public markets to help companies through the IPO process,” said Partner Derek DiRocco.

“An IPO is seldom the defining value creation event for most stocks,” added Jake Simson, Partner at RA Capital, “so we expect to continue to support our companies after they go public, by providing counsel and often by maintaining a board seat.”

“Ultimately, it is the scientists, entrepreneurs, and – of course – patients who take the true risk in bringing new and important innovations to the world. We are honored to have the opportunity to partner with these visionaries by providing them with the services and the reliable capital support to grow and deliver on their insights and passions,” said Managing Director Josh Resnick.

About RA Capital Management
RA Capital is a multi-stage investment manager dedicated to evidence-based investing in public and private healthcare and life science companies that are developing drugs, medical devices, and diagnostics. The flexibility of its strategy allows RA Capital to provide seed funding to startups and to lead private, IPO, and follow-on financings for its portfolio companies, enabling management teams to drive value creation from inception through commercialization.

At RA Capital’s core is its TechAtlas research division, a scientifically trained team that maps out competitive landscapes to put data into context, identify breakthroughs, and originate conviction in new ideas. TechAtlas provides market intelligence, technical diligence, and other resources to both our internal Investment team and our portfolio companies. Our team’s understanding of industry best practices is derived from an extensive collection of case studies documenting the impact of clinical trial design, partnership structures, and public market dynamics.