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Venture capital firm Hatteras Venture Partners raised $94 million for its sixth fund, HVP VI, with plans to hit $200 million for investments in life science startups.
Hatteras should reach its $200 million goal by year’s end, Clay Thorp, the VC firm’s co-founder and general partner, told Karma Network on April 15.
The firm, based within the Research Triangle in Durham, North Carolina, plans to use the funds to make seed- and early-stage investments in companies developing new drugs, medical devices, health technologies and diagnostics. The Triangle, home to numerous tech companies and enterprises, is anchored by three major schools -- North Carolina State University, Duke University and the University of North Carolina at Chapel Hill -- and the cities of Durham and Raleigh.
Hatteras Venture gives preference to firms in the Southeast because funding in that region is substantially less available than in Silicon Valley, Boston and New York.
Thorp sees a widespread tendency to seed companies, which Hatteras began doing in 2011. Now, he added, that practice is prevalent in California and Massachusetts, too. A second trend is growth in digital health, also called disruptive technology, an attempt to make healthcare more efficient and cheaper.
Thorp said a challenge for the Southeast is to “attract talented CEOs who know how what they’re doing. We have some, but not enough,” whereas Massachusetts and Silicon Valley have many. Among the CEOs in the Southeast are Sapan Shah of StrideBio and Mark Velleca of G1 Therapeutics, added Thorp. Hatteras invested in both companies.
The 19-year-old Hatteras Venture Partners has $550 million in assets under management. Other earlier investments include Durham company NeuroTronik, the Elligo Health Research of Austin, Texas, and the GrayBug Vision, of Redwood City, California.
Michelle Lodge is a New York-based writer whose work has appeared in Time, Fortune, Barron's, the Miami Herald, the British Medical Journal as well as on CNBC.com.