Catalio Capital Secures Over $400 Million for Fund IV

Venture capital firm Catalio Capital Management announced the successful closing of its Fund IV, raising more than $400 million, according to an initial report. This new fund will continue the firm’s focus on investing in healthcare and biotechnology startups.

Founded in 2020, Catalio has made over 100 investments to date. Notably, Fund IV has already supported 16 companies, including diagnostics firm PinkDx and drug discovery company Superluminal Medicines.

Previously, Catalio raised $381 million for Fund III in 2020 and $100 million for Fund II in 2019.

The biotech sector has felt the effects of last year’s broader venture capital slowdown, influenced by rising interest rates and a softer IPO environment. Overall, venture funding dropped to $12 billion last year, a significant decline from the $152.3 billion peak seen in 2023.