TCG Labs Soleil, a venture firm building narrowly focused biotechnology startups and readying them for partnerships, said Thursday it raised $400 million to continue launching new companies.
The firm originally launched last year in collaboration with The Column Group, raising $400 million to begin its work. It operates through a venture fund, TCG Labs, and an evergreen R&D hub, Soleil, run by a scientific team. Together, the two are building and overseeing a portfolio of single-drug companies and positioning them for deals once those programs achieve proof-of-concept data.
Biotechs can be built on a variety of strategies, from expansive drugmaking platforms to single assets. Broader bets can offer higher rewards and room for companies to shift gears if a program fails. But they’re also more expensive and time-consuming to build. Single-drug startups, by comparison, may be able to progress — or fail — more quickly and at lower cost.
TCG Labs Soleil says its model enables it to make fast decisions with better “capital efficiency,” potentially leading to partnerships at “optimal value points.”
“With this new funding, we can continue building the portfolio and position each program for success, whether through in-house development or an early strategic transaction,” Peter Svennilson, a managing partner at TCG Labs, said in a statement.
Since its formation, TCG Labs Soleil has founded 10 portfolio companies pursuing drugs for cancer, immune diseases, cardiometabolic disorders and other conditions. Most are named after San Francisco streets. In May, one of those companies, Juri Biosciences, licensed a T cell engager for prostate cancer from Shanghai, China-based EpimAb Biotherapeutics in a deal worth up to $210 million.
TCG Labs Soleil is led by Jin-Long Chen, the founder of NGM Biopharmaceuticals and a former research head at Amgen. The firm has, over the last year, added R&D capabilities in Shanghai, expanding beyond its original hub in South San Francisco, California.
“With several programs heading into the clinic, this additional raise reflects both the pace and productivity we’ve achieved since our inaugural fund, moving programs forward efficiently and opening new opportunities for strategic partnerships,” Chen said in a statement.
Other healthcare-focused venture firms to raise cash this year include Omega Funds, which this week closed a $647 million fundraise, and Deerfield Management, which announced a haul of more than $600 million in May.
