With surgery, it’s important to take a hands-on approach. The same applies to investing. Third Rock Ventures announced the close of its third fund this morning, $516 million dedicated solely to health care startups.
Third Rock Ventures is a venture capital fund that supports companies working on health IT, science, biotech, and medicine. Fund III will invest in up to 16 companies with a particular focus on the “going convergence” of diagnostics, therapeutics, information technology, and data.
The firm gets deeply involved in the process of building its portfolio companies. Step one is to discover breakthrough research and technology, and then help build “dream teams” of scientists, researchers, and executives to carry out that vision. Third Rock provides its own leadership team during the early stages of a company’s life and then helps recruit more experienced teams down the road.
Since its inception in 2007, Third Rock has raised more than $1.3 billion and invested in 31 companies to date. The firm plays an instrumental role in launching “transformative” companies, “advancing pipelines to the clinic,” and developing/bringing new products to market. Third Rock not only provides financial support but also works closely with industry partners in many different areas: academia, pharmaceutical corporations, genetic researchers, and so on, “to make this visionary science a business reality.”
Third Rock is headquartered in Boston and its team includes more than 40 people. Fund III will also help expand the team. Read the press release.