U.S. pharmaceutical giant Eli Lilly is establishing a $500 million (approximately 737.4 billion won) "biotech ecosystem fund" in collaboration with global venture capital (VC) firm Andreessen Horowitz (a16z).
Andreessen Horowitz noted on the 10th (local time) that it will collaborate with Eli Lilly to create the first venture capital fund aimed at promoting extensive innovation in the bio sector. Eli Lilly will provide the total funding, and a16z will manage it.
Eli Lilly plans to support the startups of bio healthcare experts through this fund and enable entrepreneurs to utilize the company’s research and development (R&D) program Catalyze360. Catalyze360 consists of Eli Lilly's corporate venture capital (CVC), incubating center, and research and clinical support services.
a16z stated, "This fund will focus on advancing drug development and building new modality platforms to expand emerging technologies," adding, "The goal is to foster the biotech ecosystem so this fund can maximize the potential of innovative companies' biological and engineering technologies and artificial intelligence (AI) capabilities."
Nisha Nand, vice president of Catalyze360, said, "Catalyze360 was created to accelerate the success of emerging biotech startups," and noted, "Through this biotech ecosystem fund, we can further empower the efforts of entrepreneurs who are striving to provide innovative treatments to patients more quickly."
U.S. medical publication STAT commented, "It is rare for a pharmaceutical giant to co-manage a fund with a VC or for a VC to raise capital for a single corporation." Previously, Eli Lilly and a16z have invested in several companies, including U.S. AI drug development company Insitro, gene editing technology company Amber Bio, and drug development company Arda Therapeutics.