Third Rock Ventures announced Monday that it had closed its fourth fund — it’s largest, Third Rock Ventures IV — for an oversubscribed $616 million.
The Boston, Massachusetts-based firm now has a total of $1.9 billion in assets under management in fields such as oncology, immunology, neurological disorders, cardiovascular and rare genetic diseases.
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
Fund IV has not yet begun investing, according to a company representative, but the firm has established a strong track record with its first three funds. In less than 10 years, Third Rock has invested in 40 companies, advancing 40 clinical programs and bringing four products to the market.
In Monday’s news release, Robert Tepper, partner at Third Rock, said the firm would continue to seek out innovators in key life science sectors.
“Our investment philosophy has always been shaped by the ongoing tremendous innovation in science and medicine. We aim to be both the preferred partner to scientific innovators from academia, and the preferred provider of innovative programs in important disease areas to address the biopharma industry’s pipeline needs,” Tepper said.
Third Rock’s modus operandi is to back “product engine companies,” a term that has become the company’s unofficial tagline since it began raising capital in 2007. In interviews over the years, Third Rock partners have described product engine companies as those with transformative platforms that are capable of producing multiple products for multiple indications.
The firm’s portfolio reflects that mission. Third Rock has a hand in fields such as CRISPR (Editas Medicine), and CAR T-cell immunotherapy (bluebird bio). Other big-name investments range from obesity (Zafgen) to cancer diagnostics (Foundation Medicine), and central nervous system disorders (Sage Therapeutics).
“Over the years, we have continued to build a leading investor base that is supportive of our unique model – a hands-on, team-based approach of discovering, launching and building great companies based on bold ideas that meet at the intersection of science, strategy, business and medicine,” Tepper said.
Third Rock’s model is labor-intensive, but the team has grown alongside its venture funds. According to a company spokesperson, the team is now 50-strong.
As with other venture funds, a vast majority of the investment team is male. Some progress was announced in Monday’s news release, through the addition of a new female partner, Abbie Celniker, bringing the number of female senior investors to two out of 23 (8.7%).
According to the release, Charles Homcy, was also promoted from venture partner to partner. Frank Gentile, Stephen Sherwin, and Barbara Weber, formerly entrepreneurs-in-residence for the firm, have graduated to full venture partners.
Around 80 percent of the Third Rock team is based in Boston, while a further 10 operate out of San Francisco. The company expects to invest on both coasts with Fund IV.
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