VC Firm Launches $824 Million Funding Effort

Cambridge-based Flagship Pioneering has announced that it has secured $824 million to support the growth of human health and sustainability companies originated by its Flagship Labs unit. The new capital pool will operate alongside more than $700 million in capital raised in late 2017 and 2018 that currently finances Flagship’s in-house innovation and company origination activities.

Called the Special Opportunities Fund II, the new capital pool will enable Flagship to further fuel the growth of companies originated in Flagship Labs. Investors include long-time limited partners as well as new institutional investors and family offices. The Special Opportunities Fund II follows a $285 million Special Opportunities Fund I, closed in 2016.

Last year, Flagship deployed $294 million in capital to its companies, including commitments by the first Special Opportunities fund. Combined with an additional $2.2 billion from other equity capital providers, a total of $2.5 billion in new capital fueled Flagship companies during 2018.
Since its launch in 2000, Flagship Pioneering has applied a unique hypothesis-driven innovation process to originate and foster more than 100 scientific ventures, resulting in over $30 billion in aggregate value. To date, Flagship is backed by more than $3.3 billion of aggregate capital commitments, of which over $1.5 billion has been deployed toward the founding and growth of its pioneering companies alongside more than $10 billion of follow-on investments from other institutions.

The current Flagship ecosystem includes Denali Therapeutics, Evelo Biosciences, Indigo Agriculture, Kaleido Biosciences, Moderna Therapeutics, Quanterix Corporation, Rubius Therapeutics, Seres Therapeutics and Syros Pharmaceuticals. (Source: Flagship Pioneering Website, 20 March, 2019)