Andreessen Horowitz Launches Third Bio Fund

Posted on February 05, 2020 by Medtech[y] Staff


Well known venture capital firm, Andreessen Horowitz, announced they have launched their third bio fund, called BioFund III, years after saying they would never "do bio" as the firm's primary focus concentrates on investments in both early-stage start-ups and established growth companies, primarily in the mobile, gaming, social, e-commerce, education and enterprise IT industries.

Why did they change their mind and end up announcing a new $750M bio fund?

According to the company's announcement, bio is not the “next new thing”—it’s becoming everything.

When their first bio fund was announced four years ago, they felt that software aiding in drug discovery sounded more like science fiction than something that could actually transform the patient experience in healthcare.

Now in 2020, the lines between tech, biotech and healthcare are blurring, and merging into one. Andreessen Horowitz calls this mashup of industries and services "bio."

As the lines continue to cross between software and everything else, they believe this is how the next generation of bio and healthcare companies will be built.

And it’s not just software. What is technology really? It’s principles and process. It’s a shift to an engineering mindset for relentless iteration and constant improvement; modular components that can be remixed and reused, and improvements that accrue and compound over time. Tech gives us tools beyond just software—continuous data streams to describe our health, circuits to program cells, scalpels to edit DNA, and the ability to create programmable, living medicines.

Additionally, the changing dynamic of the founders in bio will undoubtedly help this transformation as they are multi-disciplinary and not only tied to their primary discipline, whether that is being a data scientist or software engineer.

They are creating the new generation of companies at the intersection of tech + biotech + healthcare that will attack the most audacious goals in healthcare: using AI to discover new drugs; using data to provide a real-world view into how patients are progressing through their healthcare journeys; programming our cells to fight disease; improving how we care for our sickest patients; even re-engineering the entire process for how we develop, test, and get drugs to patients quickly and at lower cost.

Having such a well-known and respected venture fund continuing to help push bio into its next generation of innovation is only a positive for patients and investors.