Family offices back health care and biotech startups in August
Family offices are increasingly investing in biotechnology startups, driven by the potential for AI to accelerate drug discovery. Major firms like Duquesne and Gates Frontier are participating in significant funding rounds for companies focused on gene therapy and genomic analysis.
Why it matters
The influx of private wealth into biotech signals a robust venture capital rebound and highlights the growing intersection of AI and life sciences.
A version of this article first appeared in CNBC's Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox.
Investment firms of ultra-wealthy families are helping fuel the venture capital rebound in biotechnology. In August, family offices made 52 direct investments in private companies, with biotech startups representing about 20% of transactions, according to data provided exclusively to CNBC by Fintrx, a private wealth intelligence platform.
Stanley Druckenmiller's Duquesne Family Office, one of the most active family offices in the U.S., has backed at least four pharmaceuticals or life sciences companies this year, according to Fintrx. Last month, Duquesne participated in a $90 million Series C round for Epicrispr Biotechnologies. The 8-year-old startup is pioneering a new gene therapy for a rare muscle disorder known as facioscapulohumeral muscular dystrophy, or FSHD.
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