Now a biotech pure-play, Avalon riding ‘sweat equity’ model to outsized returns

As many other VCs have continually raised funds of increasing size to place bigger bets on young biotechs, Avalon has stuck to smaller funds and a sweat equity model, mapping out a niche in which any one of its investments might return an entire fund.

Now investing a $135 million pure-play life sciences vehicle after decoupling from the tech investment team alongside which it was once paired, Avalon BioVentures believes the path to higher return multiples starts from company creation and incubation, and avoids large, highly-dilutive rounds on the way to liquidity...