Proximal Ventures Bets on AI to Automate Pharma Services
AI-generated image · Bay Street Wire
Sahir Raoof launches a $27.5 million debut fund targeting the automation of drug development infrastructure.
Sahir Raoof has raised $27.5 million for Proximal Ventures, a solo venture capital fund focused on startups utilizing AI to overhaul the tools and services supporting drug development, according to TechCrunch.
Historically, pharmaceutical companies have relied on specialized service providers for tasks such as analyzing clinical trial data, synthesizing molecular compounds, and managing large-scale drug manufacturing. Raoof, a former SignalFire investor and executive at Flatiron Health and Iterative Health, told TechCrunch that while pharma has traditionally been a buyer of services rather than software, AI presents an opportunity to automate these processes. He believes this shift could allow startups to capture billions in industry spending by delivering services faster and at a lower cost.
Proximal Ventures targets pre-seed and seed-stage companies, with investments ranging from $500,000 to $1.5 million. The fund has already invested in seven startups, including ChronicleBio. Co-founded by former OpenAI executive Fidji Simo, ChronicleBio employs AI to analyze medical and biological data to identify treatments for chronic diseases.
The fund is backed by a mix of institutional and individual investors, including Kleiner Perkins, SignalFire, Bertelsmann Healthcare Investments, and Dimension Capital co-founders Nan Li and Zavain Dar. Also among the investors is Amy Abernethy, who previously served as the FDA's principal deputy commissioner and co-founded Highlander Health.