Physic Raises $159M in its First Fund
By Mark Calvey
Physic Ventures said Tuesday that it closed its first fund, after raising $159 million to invest inconsumer product companies focused on healthy living.
The fund-raising effort exceeded the firm's original goal of $150 million.
The San Francisco venture firm got off to a good start when Unilever, one of the world's largestconsumer products companies, stepped forward as an "anchor" investor.
That allowed the firm to make its first closing on the fund in April 2007 and begin building a portfolio that now includes Pharmaca Integrative Pharmacy Inc., Expresso Fitness, ElixirPharmaceuticals, Dreamerz Foods and Novomer.
Having a portfolio of companies to demonstrate the firm's investment strategy made it easier toattract other top-tier investors to the fund. Institutional investors coming on board included theCalifornia State Teachers' Retirement System, Humana Inc. and Parish Capital Advisors fund offunds.
"The substantial support we received from high caliber limited partners, both institutional andstrategic, is a vote of confidence for our strategy to grow businesses that capitalize on major shifts in the health-care environment," said William Rosenzweig, a managing director at Physic Ventures.
The new venture firm sees its hometown of San Francisco as playing a greater role in the venturecommunity, especially as more investors back startups tied to health care, the Internet and clean tech.
"The ecosystem in the whole Bay Area is conducive to innovation and entrepreneurship," Rosenzweigsaid. "We're seeing a greater concentration of investors in San Francisco."
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