Red Tree Venture Capital closed a $272 million inaugural fund that will be used to support the development of therapeutics addressing unmet needs in oncology, neurology and immunology.
Biotech Bay has a new source of venture capital. Red Tree Venture Capital closed a $272 million inaugural fund that will be used to support the development of therapeutics addressing unmet needs in oncology, neurology and immunology.
A significant portion of Red Tree Venture Capital Fund I has already been doled out to 10 early-stage life sciences companies focused on the development of best-in-class or first-in-class therapeutics.
Founded in 2020, Bay area-based Red Tree’s investment strategy relies on strong relationships with scientists and entrepreneurs at academic and research organizations up and down the West Coast.
Red Tree’s investment approach is built on four pillars. First, companies with a “West Coast-centric” presence and a focus on developing therapeutics in the aforementioned areas of oncology, neurology and immunology. The venture group prioritizes startups or companies in the early clinical stages. Finally, Red Tree aims to support companies developing therapeutics that will be best-in-class or first-in-class.
Heath Lukatch, co-founder and managing partner of Red Tree Venture Capital, told BioSpace there is an “amazing amount” of scientific innovation that is occurring today. With the amount of research coming from different sources, Lukatch said it’s the right time to create and invest in life sciences companies that are at the forefront of their fields.
“This is particularly true for the West Coast biotech ecosystem, which combines transformative science with a vibrant, collaborative culture. At Red Tree Venture Capital we believe there is a tremendous opportunity to partner early with West Coast entrepreneurs and scientists to support translation of their foundational research into successful life science companies capable of transforming patient lives,” Lukatch said.
Supported Companies
In the two years since its launch, Red Tree has made significant investments in 10 companies that fit its four-pillared priorities. These include:
Alladapt Immunotherapeutics: A clinical-stage company focused on the development of novel oral immunotherapies for treatment of a broad spectrum of food allergies. In June, the Menlo Park outfit raised $119 million. Its lead asset ADP101 is currently in a Phase I/II study for the treatment of food allergy in children and adults.
Pipeline Therapeutics: The San Diego-based clinical-stage company is developing first-in-class therapies for precision neuroregeneration. It focuses on myelin restoration, synaptogenesis and axonal repair with applications in hearing loss and multiple sclerosis. Earlier this year, Pipeline received FDA clearance to initiate a Phase Ib/II study to assess PIPE-307 in MS patients.
Acrigen Biosciences: A Bay Area company developing best-in-class precision gene editing platforms to improve the safety and efficacy of CRISPR therapeutics. Red Tree, along with Alexandria Venture Investments supported the company’s seed financing last year.
Ceribell, Inc.: Based in Sunnyvale, the company markets a brain monitor for point-of-care seizure triage and treatment optimization. The Ceribell point-of-care EEG system first received FDA 510(k) clearance in 2017 for indicating suspected seizure activity. It is currently used in intensive care units and emergency rooms across the United States. Last month the company received Breakthrough Device designation for the detection of delirium.
Rondo Therapeutics: Based on San Francisco, Rondo is developing a new class of bispecific antibodies that safely engage the immune system to initiate and sustain a robust anti-tumor response. In March, the company raised $67 million in a Series A financing round to support its immune stimulatory bispecific antibody program.
Sardona Therapeutics: The San Francisco-based company is developing novel small molecule drugs to destroy intractable tumors and transform patient outcomes by targeting RNA regulators.
Syncopation Life Sciences: The clinical-stage company is developing a new generation of adoptive cell therapies for cancers, with a focus on addressing primary mechanisms of resistance to CAR-T therapies.
Red Tree was founded by Heath Lukatch and Jennifer Cochran. The firm is led by managing director Jon Edwards. In a brief statement, Edwards said there is a need for early-stage capital to support the West Coast ecosystem.
