Skyline Ventures Expects Bright Horizon, Up to $250M Fund

Skyline Ventures has a pretty good view, for a life sciences VC. Following up on its 2007 fund—and at a time when very few dedicated healthcare, life sci and medical funds are gaining traction with LPs—sources say they’ll pursue a sixth fund with a $250 million target, and that they ought to hit it, as well.

Sources who spoke with peHUB about the ongoing fundraising said any expected staff shakeup will be minimal between the fifth (2007) fund and the vintage currently being raised—in fact, Skyline, which was formed in 1997, may be bolstering its staff.

The only publicly available figures on Skyline fund performance is a 2001 vehicle that went by the name Skyline Venture Partners Qualified Purchaser Fund III, L.P., according to Thomson Reuters data. It generated a net IRR of 2.4 and investment multiple of 1.11x, according to recently available data obtained from CalPERS. It remains unclear whether CalPERS will be a part of Skyline’s future going forward; one source said LPs Princeton and Yale will not be back for the VC’s next fund.

Other funds raised by the VC, according to Thomson Reuters data, include a $23 million fund in 1997; a $75 million Fund II in 2000; a $130 million 2001 Fund III; a $175 million Fund IV in 2005 and its 2007 fund, a $344.75 million Fund V.

Recent deals for the VC include Collegium Pharmaceuticals, SI-BONE, and Genocea Biosciences.

Two sources said the VC is “mostly” done with its 2007 capital pool. According to the Palo Alto-based VC’s website, it invests between $15 million and $35 million per deal.

Lately, while dedicated life sciences and healthcare funds have struggled to raise funds, bigger VCs that allocate a portion of their pool to the space have fared better. In fact, LPs who spoke with peHUB at PartnerConnect 2012 said they preferred to avoid investing with dedicated funds in the space, in part due to the regulatory uncertainty the asset class faces with regard to approval in Washington.

Image Credit: Photo provided by Skyline Ventures