UPDATE: MAY 26, 2017
Ideamensch recently interviewed Scott Rocklage. This interview gives great insight into Rocklage’s day-to-day and his business process. Read the interview in its entirety below.
Startups companies in 46 states received venture capital funding in the first quarter of 2017. California-based companies took home the biggest chunk of that funding, but the East Coast was second. In all, 560 California companies received $8.3 billion, and that is 50 percent of the total venture capital invested across the United States. Scott Rocklage, the managing director of 5Am Ventures, is based in Boston, and his company is expecting to hit its projections in 2017. Rocklage is an MIT PH.D., and he is one of the pharmaceutical industry’s most illustrious investors.
The 5AM Portfolio is as an impression as Scott Rocklage’s resume. The 5AM portfolio includes pharmaceutical and healthcare companies like Biodesy, Aprea Pharmaceuticals, Alexza, Ambrx, Cidara, DVS Sciences, IKARIA Critical Care and ENVOY Therapeutics. The portfolio also includes companies like Kinestral, Arvinas, Audentes Therapeutics, and Rennovia. 5AM has more than $1 billion in assets under management. Dr. Scott Rocklage is a research and development chemist as well as an accomplished businessman. He sits on the board Cidara and Rennovia, and he is a former Board Chairman of Novira, Kinestral, and Relypsa. Scott is also a member of the Massachusetts Biotechnology Council board, and he is a Whitehead Institute board member. Scott also has 30 patents, and he is working on several new projects.
Rocklage stays tuned into the VC industry. In the first quarter of 2017, venture capital companies raised almost $8 billion across 58 funds. That is 24 percent less than the funds raised in the same quarter of 2016, according to Rocklage. The main reason for the decline was the majority of the funds raised was less than $250 million. In other words, there was an absence of mega-funds. There were two VC firms that raised more than $500 in the first quarter of 2017. Spark Capital raised $612.8 million, and Mithril Capital raised $850 million.
Even though 5AM Ventures is not in that group, the firm is still optimistic about their position in the healthcare and pharmaceutical sectors. Andrew Rocklage likes to focus on a low loss rate, and he is diligent about maximizing shareholder returns for all 5AM portfolio companies. Dr. Rocklage and his team have the ability to identify the top scientists in the healthcare sector, and the team usually works with well-established entrepreneurs. The 5AM team also co-invests with other venture capitalists and partners associated with major life science companies.