Toronto-based Genesys Capital, which is focused on investing in seed healthcare startups, announced that it’s closed $90 million of its $125 million target for its third fund, according to PE Hub.
Managing director Damian Lamb said that it expects to reach its goal for Genesys Ventures III early next year. Should the fund reach this target, it would be the largest Genesys has raised in its 16-year history. Fourteen limited partners committed to Fund III, including HarbourVest Canada Growth Fund, a $375 million venture fund-of-funds managed by the Boston asset manager HarbourVest Partners.
Lamb says that the fund is closing as investment in life sciences companies is intensifying. In the first half of this year, 45 deals, which included companies like DalCor Pharma and Zymeworks garnered $368 million, an amount that exceeds annual totals in four of the past six years.
“There is very good science in Canada and great opportunities to be had,” said Lamb. “But there have not yet been enough venture-backed successes.”
Fund III’s first deal is set to be announced in the fall. Lamb said Genesys wants to use the fund’s proceeds to add to the investment team and “expand the capabilities we can bring to bear on the portfolio.”