Biotech VC Firm Behind Moderna Secures $3.6B for “Breakthrough” Companies

Flagship Pioneering, a life sciences venture firm, has secured $3.6 billion for its eighth fund, which aims to create and advance approximately 25 new “breakthrough” companies in human health, sustainability, and artificial intelligence.

The raise comprises $2.6 billion for Flagship Fund VIII and $1 billion for “side funds” such as sector-specific partnerships. Since 2021, the Cambridge, MA-based firm has raised $6.4 billion, has an aggregate capital pool of $10.9 billion, and manages $14 billion in assets. Since its last fund in 2021, the firm has invested $5.8 billion in its portfolio of firms.

Investors in the current fund include the Texas Municipal Retirement System, which pledged $75 million, and the Michigan Retirement System, which contributed $200 million in April.

The investment plan aligns with Flagship’s funding goals in recent years. Founder and CEO Noubar Afeyan stated that in the last six years, the life sciences incubator has “pioneered AI-enabled platforms that transform drug discovery, speed up the drug development process, and gain new insights into human health and sustainability.”

Flagship has created over 100 companies to date, including notable industry leaders such as Moderna, Sana Biotechnology, and Denali Therapeutics.

Many of Flagship’s businesses have since formed partnerships with major pharmaceutical companies. Last month, Flagship-backed ProFound Therapeutics signed a potential $7 billion partnership with Pfizer to develop first-in-class obesity drugs.