Big new fund with subtle changes

OXFORD - The slowdown in IPO activity has not deterred investors from backing Atlas Venture's new $400 million fund - Atlas Venture IV - for investment in high growth life sciences and information technology companies in the U.S. and Europe. At least $120 million of the new fund has been earmarked for life sciences investments over the next three to four years, Rob Zegelaar, a principal at Atlas Venture, told BioCentury. This is the largest amount Atlas has committed to life sciences in any of its funds.

With the changing sentiment toward biotech, Zegelaar noted that Atlas will make a number of subtle changes in its investment strategy. "We do not want to be just dependent on IPOs any more. Previously, the exit strategy was exclusively IPO rather than through strategic exit. You can no longer think that way. You need to have the ability to at least do a trade sale because of fluctuations in the stock markets," he said...