HomeUSA.406 Ventures Closes Fund V, at $265M

.406 Ventures Closes Fund V, at $265M

406 ventures

.406 Ventures, a Boston, MA-based early-stage venture capital firm, closed its fifth core fund, at $265m.

Point 406 Ventures V, L.P., received support from new and existing limited partners, including university endowments, foundations, pension plans, and strategic investors.

Consistent with prior funds, the new fund will invest in promising companies focused on solving the biggest problems in healthcare, data + AI, and cybersecurity. The new vehicle has already backed four companies with plans to make over 20 investments.

Since its founding in 2005, .406 Ventures has raised over $1.4 billion across five core funds and three opportunity funds and invested in 87 innovative companies that have created over $18 billion of value. .406 was the first institutional investor in category creators with exits including Iora Health (now a central pillar of Amazon Health), AbleTo (one of Optum Health’s core behavioral health offerings), Carbon Black and CloudHealth (VMWare’s endpoint protection and cloud management platforms, respectively), and Corvus (Travelers’ foundational cybersecurity insurance business).

.406 will also expand support of portfolio companies through several initiatives including its active Executives-in-Residence program, the 14 year-old .406 Student Fellows program; and three industry-specific Executive Councils composed of over 100 C-level operators from Fortune 500 companies.

Commenting on the new fund, Liam Donohue, co-founder and managing partner, said: “With the new fund, we will stay true to our time-tested strategy of backing exceptional founders who are obsessed with solving the biggest and most vexing problems in healthcare, data + AI, and cybersecurity – the industries we know best. Over the next few years, we are particularly excited to build upon our 15-year track record of investing in data + AI companies, especially those that sit at the intersection of AI with our other two areas of expertise – healthcare and cybersecurity.