Menlo Park, California – Andreessen Horowitz (a16z) Bio + Health has partnered with pharmaceutical giant Eli Lilly and Company to establish a new $500 million venture capital fund. Named the Biotech Ecosystem Venture Fund, this initiative aims to accelerate innovation across human health by investing in therapeutic platforms and cutting-edge technology companies. The fund, announced in January 2025, will deploy capital to companies at all stages, from inception to growth.
The collaboration represents a novel approach in the venture capital landscape, combining a16z's extensive experience in sourcing and scaling bio + health companies with Lilly's deep expertise in life science research and development. Vineeta Agarwala, M.D., Ph.D., a general partner at a16z Bio + Health, stated, "The Biotech Ecosystem Venture Fund seeks to enable visionary founders to create enduring solutions in biotech and healthcare." This partnership is designed to overcome complex challenges within the healthcare ecosystem by leveraging both organizations' strengths.
Lilly is contributing all the capital to the fund and will provide portfolio companies with access to additional resources, including its Catalyze360™ support structure. This program offers biotech startups access to Lilly Ventures, Lilly Gateway Labs®, and Lilly ExplorR&D™, providing world-class pre-clinical and clinical drug development talent and resources. The fund will focus on advancing new medicines, enabling novel modality platforms, and scaling emerging health technologies, with a particular emphasis on artificial intelligence capabilities.
The establishment of this fund comes amidst a broader resurgence in the biotech funding market, following a period of slower investment. Industry experts note that such partnerships, while unusual, are poised to drive significant progress by fostering a technology ecosystem for ambitious bio + health entrepreneurs. The fund's long-term view is intended to help disruptive companies realize the full potential of new biological science and engineering technologies.