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Arch Venture Partners has become the world's third most active biotech VC investor, according to PitchBook.

The firm raised a $3.1 billion fund last year and has invested about a quarter of that so far.

What follows is an interview with Arch co-founder and managing director Keith Crandell, which was edited for clarity and length:

Axios: Chicago's not known for being a biotech hub. Why are you there?

Crandell: "The strength of the relationships that we had from our time at University of Chicago has been enormously helpful to the firm over time. The universities here have very good science."

"Our thesis has been to follow the science. We're going to be involved in things that are three to five years earlier than they're generally in the consciousness of the public."

How are you different from other life sciences investors?

"Because we're in as early as we are, we're the ones that are involved in hiring the CEOs and helping through the process of raising capital.

We're bringing capital, but it's really about our network."

Some say we're in the midst of a "biotech winter" because of muted funding and IPO activity. Does that worry you?

"Some of the very best companies we've ever done have been done during the downturns."

How are your therapeutics companies adapting?

"We have to shift. So instead of doing five (programs) hoping two that are going to work out, we're going to do one (program) that we have the absolute stone cold best expectation of delivering on.

Instead of doing more with more … we're going to do more with less."

Why do we sometimes see biotech stocks struggle post-IPO?

"You don't have the generalist buyers coming in to pick up.

Rather than price your IPO to perfection ... is it better to price it reasonably? Let the market walk it up a little bit, and then you've got momentum."

🧯First job: Volunteer firefighter and EMT in upstate New York at 18 years old

"The neighbors and community really appreciated the assistance. I was better for it."

Arch's Crandell: "Follow the science" on biotech investing

The venture firm's current fund is $3.1 billion.

Photo illustration of Keith Crandell surrounded by abstract science and health shapes. 

Photo illustration: Axios Visuals. Photo: Courtesy of Arch Venture Partners

<p>Arch Venture Partners has become the world&#x27;s third most active biotech VC investor, according to PitchBook.</p><ul><li>The firm raised a <a class="gtmContentClick" data-vars-link-text="$3.1 billion fund last year" data-vars-click-url="https://www.chicagobusiness.com/health-care/arch-venture-partners-closes-3b-biotech-fund" data-vars-content-id="595f89c5-4693-42b5-b548-bc8b4f4d000e" data-vars-headline="Arch&#x27;s Crandell: &quot;Follow the science&quot; on biotech investing" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.chicagobusiness.com/health-care/arch-venture-partners-closes-3b-biotech-fund" target="_blank">$3.1 billion fund last year</a> and has invested about a quarter of that so far.</li></ul>

Arch's Crandell: "Follow the science" on biotech investing

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