Clarus Ventures Raises $660 Million Life Sciences Fund

2/25/08Follow @bbuderi

Clarus Ventures, a venture firm specializing in life sciences investments with offices in Cambridge, MA, and South San Francisco, announced today that it has raised a $660 million fund—the company’s second fund since its founding barely two years ago by a group of former partners of MPM Capital.

Clarus said it plans to invest between $20 million and $60 million in each of its portfolio companies, mainly in the biotech, specialty pharmaceuticals, and medical devices arenas. The firm will invest in both established companies with strong revenue growth and profitability, as well as newer ventures with “breakthrough products and technologies,” according to its statement.

Clarus launched in 2005 with a $500 million fund. Some 90 percent of that money is now committed, the company said, explaining the need to raise a new fund. Despite the firm’s Kendall Square outpost, none of the 13 current portfolio companies listed on its website are based in Massachusetts. But the venture firm was an investor in Hypnion, of Lexington, MA, which Eli Lilly bought last year for $315 million—putting Hypnion in fourth place on our list of top Massachusetts M&As of 2007.

Bob is Xconomy's founder and editor in chief. You can e-mail him at bbuderi@xconomy.com, call him at 617.500.5926. Follow @bbuderi

By posting a comment, you agree to our terms and conditions.