2 former Apple Tree investors roll toward new biotech-focused fund launching with $310M
The launch of Scion Life Sciences, a new biotech-focused investment fund led by two former Apple Tree Partners investors, is notable for several reasons:
1. **Funding**: Scion Life Sciences debuted with an inaugural fund of $310 million, which is higher than their initial target of $250 million, showcasing a significant level of investor interest in the biotech sector.
2. **Management Team**: Scion's founders, Sam Hall and Aaron Kantoff, have extensive experience in the field from their previous roles at Apple Tree Partners. Kantoff was also a co-founder of RayzeBio, a radiopharma success story. Tadd Wessel, the managing partner of Petrichor, a healthcare venture firm, is also a co-founder and managing director of Scion.
3. **Incubation Model**: Scion aims to differentiate itself by focusing on early-stage science, particularly in the areas of biologics and large-molecule development. Their in-house R&D capabilities, Scion Innovations, will be used as a proving ground for entrepreneurs, prioritizing projects with a high probability of success and the potential to create paradigm-shifting medicines.
4. **Long-Term Focus**: The firm's investment strategy stands out with a 20-year plan for its first fund, contrasting with the typical 10-year timeframe observed in most biotech venture capital firms.
5. **Potential for Durable Startups**: Scion emphasizes building a small number of durable startups equipped with significant resources and funding, which aligns with the approaches of successful venture creators like Flagship Pioneering and Arch Venture Partners.
6. **Rebounding Investor Enthusiasm**: The launch of Scion, alongside other recently launched biotech funds, suggests a rebounding investor enthusiasm for the biotech sector, which has been boosted by an uptick in deal-making and IPO activity.
7. **Research and Development Capabilities**: Scion's ability to keep investing in and supporting companies from pre-formation stages to maturity, and with the capability to commit $60 million or more to an individual portfolio company, sets it apart as a comprehensive partner in the biotech ecosystem.
The launch of Scion Life Sciences, with its unique approach to incubation and its long-term investment horizon, signifies a promising addition to the biotech venture capital landscape. The firm's early focus on large-molecule development and biologics, combined with its integrated R&D capabilities, positions it as a potential driver of significant paradigm shifts in the pharmaceutical sector.