Bayer Healthcare, a subsidiary of pharmaceuticals and chemicals producer Bayer, agreed on Tuesday to invest up to $25m as a strategic partner in US-based venture capital firm Versant Ventures’ latest fund.
Bayer is one of several limited partners contributing to Versant Venture Capital V, which will target biotech and medical device start-ups in Europe, the US and Canada that are developing new therapies in areas of high unmet medical need.
Versant, which raised $500m for its fourth fund in 2008, had reportedly raised $295.5m for its newest fund as of July.
Andreas Busch, a member of Bayer HealthCare’s executive committee, said: “Our commitment parallels Versant’s vision to advance early medical innovation and patient care. We are looking forward to supporting promising early stage companies that are addressing disease areas of high unmet medical need.”
Bayer and Versant Ventures have partnered once before. Last year, Bayer HealthCare announced an exclusive collaboration with incubator Inception Sciences, which is exclusively backed by Versant Ventures, to research retinal eye diseases.
As a result, Inception 4, a company developing treatment options for patients suffering from eye diseases, was spun-out following their collaboration. Bayer holds the exclusive option to acquire Inception 4 under certain conditions.