7 Venture Funds Deploying $4 Billion for Biotech This Fall

Biotech funding remains tight in 2025, but a new crop of U.S. life-science funds is signaling that help is on the way. Between July and October, seven firms have announced new funds for investment in drug discovery, medical devices, and digital health companies, offering entrepreneurs a potential funding source during a dire time for the industry.

According to Crunchbase, the share of investment going to biotech startups in the U.S. is at a 20-year low, with investors putting $16.6 billion, or 8 percent, of their money in seed through growth rounds.

Here is a quick guide to who raised what and the types of companies they plan to back.

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1. Frazier Life Sciences — $1.3 billion

Frazier closed a $1.3 billion fund focused on creating and investing in early-stage biopharma companies. The firm says it will continue forming new therapeutics startups and backing early private programs. Portfolio companies have achieved more than 65 FDA approvals, including KalVista’s regulatory clearance in July for the first oral on-demand treatment for hereditary angioedema.

2. Omega Funds — $647 million

Omega’s eighth flagship fund was oversubscribed at $647 million when it closed in July. The firm invests across the U.S. and Europe in areas such as oncology, immunology, rare diseases, precision medicine, and select devices. Omega says it supports companies from creation through later stages and points to dozens of commercialized products and exits by past portfolio companies.

3. Sanofi Ventures — $625 million

Sanofi added $625 million to its evergreen corporate venture fund, pushing total assets under management to more than $1.4 billion. The group invests in areas aligned with Sanofi’s strategy, including immunology, rare diseases, neurology, and vaccines. The organization is also interested in backing AI and digital health startups. Sanofi Ventures invests across the spectrum of a private company’s financing, from seed-stage to IPO.

4. Catalio Capital Management — more than $400 million

Catalio raised its fourth venture fund, topping $400 million. The firm cites a focus on medicines, devices, diagnostics and tools, often spinning out of leading academic centers and led by repeat founders. Recent investments include Leo Cancer Care, a company developing upright radiation therapy technology, and Ospri BioPath, a diagnostics company working on infectious disease detection.

5. Atlas Venture — $400 million

Atlas closed a $400 million fund to provide follow-on and growth capital to companies it helped start with earlier investment rounds. This vehicle sits alongside Atlas’s formation fund and is meant to keep backing programs as they move from early invention toward later proof points.

6. Ascenta Capital — $325 million

Ascenta, founded by physician-investors, closed a $325 million debut fund to invest in biotech in the early stages of clinical trials. The firm says it is disease agnostic but looks for companies with therapeutic platforms that can balance drug development risk with diversified multi-medicine pipelines. Prior investments include OrsoBio, a company targeting obesity, and Cardurion Pharmaceuticals, which is focused on cardiovascular diseases.

7. Hatteras Venture Partners — more than $200 million

Hatteras announced final closes for two healthcare-focused funds totaling more than $200 million. The firm emphasizes seed and early-stage investing across biopharma, med tech and health tech.