Threshold raises $35M to treat tumors after financial turmoil

Threshold Pharmaceuticals, developer of treatments for tumors, has fallen on tough times after going public in 2005. But it just brought in $35 million in a sale of 18.3 million shares of common stock and warrants for 7.3 million more to Great Point Partners — a buyout firm — and investment firms Federated Kaufmann Fund and Frazier Healthcare Ventures.

The Redwood City, Calif., company’s past investors include Sutter Hill Ventures, HealthCare Ventures, Alta Partners and Three Arch Partners — all of which were still invested this spring. Before its IPO, Threshold brought in $50 million from Morgenthaler Partners, Pequot Capital Management, ProQuest Investments, and Sofinnova Ventures in addition to Three Arch and Sutter Hill.

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