It takes a village

5AM Ventures isn't about to jump on the bandwagon with other early stage biotech venture firms that are raising large funds with the goal of forming smaller syndicates and retaining larger ownership stakes. Instead, the VC will invest its new fund using its long-time approach of providing the first institutional money for biotechs as part of a syndicate with multiple other VCs.

The firm thinks bigger syndicates decrease failure rates by enabling funding for longer periods of time and providing access to bigger networks to help find exits...