Skip to main content

5AM Ventures Closes $150M Fund II - I’m In!

I am thrilled to report the recent closing of 5AM Ventures Fund II.

Thrilled, in part, because I am lucky enough to be a Limited Partner in the fund!

Fund II is a $150M fund focused on early-stage biotechnology and medical device companies. VentureWire Professional reports it here (subscription required). In particular:
5AM Ventures has closed its second health care venture fund at $150 million and has funded three early-stage companies from the new vehicle, Managing Partner Andrew J. Schwab told VentureWire.

The Menlo Park, Calif., firm held a final closing on Dec. 19 for the fund, which had a $150 million target. The fund more than doubles the $65 million debut partnership the firm raised in 2003.

So, why did I invest in 5AM Ventures (and, indirectly, in their Portfolio companies)? Simple:

  1. I always invest in the people. John Diekman, Andy Schwab, and Scott Rocklage are guys with the proper moral compass. I've spent a lot of time with these guys, and their entire team, and consider myself lucky to know them all. In addition to being very good and knowledgeable investors, they are very good people. In my most recent interaction with John, as an example, it was natural for me to end my time with him with the following: "John, you are a consummate gentleman, generous, and gracious." If you know John, you will know what I'm talking about. 5AM Ventures has also assembled an extremely impressive Scientific Advisory Board which brings them some clear advantages.

  2. I always invest in the market. The biotechnology and medical devices markets are focused on bringing life-changing advances to mankind. These are big-money markets today, and the next 10 years will see some amazing breakthroughs (pay no attention to my review of Next). Early-stage investors, like 5AM Ventures, are investing at the right time to see some seriously big returns. At $150M, it's a relatively small fund for biotech (which, I think is to their advantage), but the likes of John, Andy, and Scott have the knowledge and contacts to find and win the right to invest and grow the best companies. In essence, a smaller fund focused on early-stage investments with a well-connected team in a booming and liquid sector means, to me, that their chance for one or two very big wins are higher than most.

  3. I always invest in firms that can execute. 5AM Ventures is young, to be sure. Founded in 2003 with a $65M Fund I means that there has not been much time to measure their success as a firm. However, their portfolio speaks for itself. That's great progress for a $65M fund over a 3-year investment period. VentureWire reports that Fund II already has 3 investments in Fund II (which are not yet on the Portfolio page).

Bottom line: I don't know how to invest in biotech. I believe in the market and the timing for the market, but I couldn't pick the winners. No chance. I'll stick to what I know (Enterprise/IT, Virtualization, Open Source, Mobile, Internet Services) and leave the biotech space to these folks, thank you. I'll invest in the investors and, wherever I can, help them be successful.

Best of luck to the entire 5AM Ventures team!

Tags: , , , , , , , ,


  1. [...] "About one-third of the money is going into Life Science". Good thing I’m invested in 5AM Ventures! [...]

  2. [...] “About one-third of the money is going into Life Science”. Good thing I’m invested in 5AM Ventures! [...]


Post a Comment

Popular posts from this blog

Bill Coleman Joins 3tera Advisory Board

I think this move surprised a number of people, since Bill recently wrapped up Cassatt Corproation, getting the technology and people  acquired by Computer Associates . However, I was not surprised at all. The announcement, via  3tera Welcomes Bill Coleman : You may or may not have seen the recent press realease.  Bill Coleman, IT/Silicon Valley luminary, Founder and CEO of BEA Systems, has joined 3Tera’s Advisory Board. Yes, this alone is a great testimonial to what we have accomplished in our field.  Getting dignitaries such as Bill does not come easy.  But here’s the best part - this has a lot more than just marquee value and I doubt that Bill would have joined us if that was the case.  Bill, especially since his most recent stint as Founder and CEO of Cassatt Systems, is an extremely knowledgeable visionary in the area of utility and Cloud Computing; and, data center automation. So, Bill will be extremely valuable, reviewing and tweaking both our business plans and techno

Big In Japan Open Sources Their Ruby On Rails Tools

The kind folks over at Big In Japan have graciously decided to Open Source the code they used to build their demo web sites . It's all Ruby on Rails code, and it's being released with a GPL license. The code trees being made available include: elfURL ~ URL Shortner FeedVault ~ OPML file storage FrankenFeed ~ RSS feed merger InstantFeed ~ RSS feeds via email QwikPing ~ Ping Server SocialMail ~ RSS via email Very cool. I just love the Open Source community . I have actually been writing some code of late, and it's great to have some reference code to check out. Not sure if I'm going to go with Ruby on Rails yet, however. And, for the record. I have no idea if this is big in Japan. Tags: Open Source , GPL , Ruby On Rails , Big In Japan , Brian Berliner , brianberliner

CA Acquires 3Tera – It’s About Time!

I started tracking 3Tera in August 2005. They made some amazing progress with their AppLogic release in the next 12 months and things were really starting to look good, so I wrote my first article about them in September 2006 . A couple weeks later, ReadWriteWeb called them out as well . Time passed. 3Tera was early. The market was maturing. Keep pounding away at it… Meanwhile, Cassatt Corporation, the company I co-founded in April 2003 with Bill Coleman and Dave McAlister, sold its technology assets and people to Computer Associates in June 2009 . The Cassatt team was all over scalable “cloud” computing architectures and the management thereof. CA’s acquisition, combined with some of their other aggressive moves in this space (the similar acquisitions of NetQoS, Oblicore, Orchestria, Platinum Technology, and Netreon) made it clear that CA saw some white-space for them to expand into cloud management in a big way. Next, I reported how Bill Coleman joined up with 3Tera as