Catalio Capital Management announced the successful close of its fourth venture capital fund, Fund IV, raising more than $400 million. This latest fund continues the firm’s established investment approach focused on healthcare and biotechnology companies.
Founded in 2020, Catalio Capital has, to date, made over 100 investments, according to PitchBook data. Fund IV has already allocated capital to 16 portfolio companies, including notable investments in diagnostics company PinkDX and drug discovery startup Superluminal Medicines.
Catalio’s previous fundraising efforts include a $381 million Fund III raised in 2020 and a $100 million Fund II from 2019.
The biotech investment environment has recently faced challenges due to broader venture capital downturns, rising interest rates, and a cooler IPO market. Overall biotech sector fundraising last year dropped significantly to approximately $12 billion, down from a 2023 peak of $152.3 billion, highlighting the ongoing difficulties within the market.
