TCG Labs Soleil, a venture firm specializing in building narrowly focused biotechnology startups, announced Thursday it has raised $400 million to continue its strategy of launching single-drug companies and preparing them for strategic partnerships with pharmaceutical giants.
The firm, which originally launched last year through a collaboration with The Column Group, operates through a dual structure combining TCG Labs venture fund with Soleil, an evergreen R&D hub run by a dedicated scientific team. This model focuses on building and overseeing a portfolio of single-drug companies, positioning them for deals once their programs achieve proof-of-concept data.
Strategic Focus on Single-Asset Development
TCG Labs Soleil's approach represents a departure from the traditional biotech model of building expansive drug-making platforms. While broader strategies can offer higher rewards and flexibility if programs fail, they are also more expensive and time-consuming to develop. Single-drug startups, by comparison, may be able to progress or fail more quickly and at lower cost.
"With this new funding, we can continue building the portfolio and position each program for success, whether through in-house development or an early strategic transaction," said Peter Svennilson, a managing partner at TCG Labs, in a statement.
The company says its model enables fast decisions with better "capital efficiency," potentially leading to partnerships at "optimal value points."
Growing Portfolio and Leadership
Since its formation, TCG Labs Soleil has founded 10 portfolio companies pursuing drugs for cancer, immune diseases, cardiometabolic disorders and other conditions. Most companies are named after San Francisco streets, reflecting the firm's Bay Area roots.
The portfolio has already demonstrated deal-making potential. In May, Juri Biosciences, one of TCG Labs Soleil's portfolio companies, licensed a T cell engager for prostate cancer from Shanghai-based EpimAb Biotherapeutics in a transaction worth up to $210 million.
TCG Labs Soleil is led by Jin-Long Chen, the founder of NGM Biopharmaceuticals and former research head at Amgen. Under Chen's leadership, the firm has expanded its R&D capabilities over the past year, adding operations in Shanghai to complement its original hub in South San Francisco, California.
Clinical Progress and Future Outlook
"With several programs heading into the clinic, this additional raise reflects both the pace and productivity we've achieved since our inaugural fund, moving programs forward efficiently and opening new opportunities for strategic partnerships," Chen said in a statement.
The $400 million funding round positions TCG Labs Soleil to accelerate its unique model of creating focused biotech companies designed specifically for eventual partnerships with larger pharmaceutical companies, rather than building standalone entities for independent growth.
