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than 75 startups. He was the founding chairman of Aurora Biosciences, which was started in 1995 and was acquired by Cambridge, MA-based Vertex Pharmaceuticals in 2001 for $592 million. He also invested in Illumina (NASDAQ: ILMN), Onyx Pharmaceuticals (NASDAQ: ONXX), Sequana Therapeutics (now part of Celera Genomics), and Pharmacopeia, (acquired by Ligand Pharmaceuticals). Among his latest deals are investments in Avelas, which Luke recently profiled, AnaptysBio, Amira, InCode, and Sirion.
Yet Kinsella’s star wasn’t always shining so brightly. His first fund was just $400,000, raised in 1983 from two friends, and he basically labored alone for years in the vineyards of life sciences venture capital as he slowly gained credibility and recognition. For many of the past 25 years, in fact, the two biggest players in San Diego’s life sciences venture community were Enterprise Partners Venture Capital and Forward Ventures. Yet neither firm has raised a new fund in years, and both have significantly curtailed their operations—along with several other homegrown VCs.
So how does Kinsella view the situation?
“I think it’s inarguable fact that there are a number of venture funds that are just not continuing in town, although I don’t want to necessarily say who they are,” Kinsella says, in deference to the sensitivities of his fellow San Diego VCs. “There’s a certain diminution of investable capital through various fronts here.”
But is it important to San Diego’s startup community to have homegrown VCs?
“I think it is, because a proper ecosystem that is fertile for startup companies requires local venture capital. I frankly can’t think of an example of a robust, startup-friendly ecosystem anywhere else in the country, let alone the world, where they don’t have a significant contingent of local venture funds.”
Kinsella says the evaporation of local venture capital, however, has not been a significant issue for Avalon Ventures. “From our standpoint, we are pretty autarchic at the early stages, meaning we don’t really feel the need for validation from our confreres in the … Next Page »
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