Pioneering strategies for technology commercialization
Steven Lazarus was recruited to lead the new organization, with the broad mandate
to license promising technology and promote the formation of spinoff companies. In 1986, Robert Nelsen and Keith Crandell
joined Lazarus to focus on new company formation. Together they pioneered a successful commercialization strategy that
benefited both the university and the scientists behind the research.
Very importantly, they recognized the need to create a venture capital fund to support
the formation of spinoff companies, as the midwest did not support a strong early stage venture capital community at the time.
Shortly thereafter, in 1989 ARCH raised its first venture fund.
In late 1992, Lazarus, Crandell, and Nelsen formed ARCH Venture Partners in a friendly
separation agreement with The University of Chicago, which became a special limited partner and investor in the new venture
capital firm. ARCH Development Corporation remained within the university as its technology transfer arm.
A year later, Clinton Bybee, an experienced seed investor and colleague from ARCH Development
Corporation dating back to 1988, joined as ARCH's fourth partner. As a team ARCH's founding partners are unique, sharing more than
two decades of collaborative experiences in early stage new enterprise formation. This cohesive structure has been an underpinning
of the firm's continuing success.
Over 20 years of achievement
Now in its 22nd year and with nearly $1.5 billion in capital under management,
ARCH has secured its place among the largest providers of seed and early stage capital in the U.S. More than 120 new
ventures have been funded by ARCH, often from the concept stage. Today many are public companies or have become part
of other prominent organizations. These achievements have won the attention of distinguished business journals, including
profiles in Fortune Magazine and The Wall Street Journal, as well as The Harvard Business School, which published two
case studies examining ARCH's successful model of technology commercialization.
Going forward, the partnership intends to continue investing in seed and early stage technology companies that have
the potential to grow rapidly into substantial enterprises.
View a list of ARCH portfolio companies that have achieved financial liquidity through
IPOs or private sales.
Fund chronology
1989 |
ARCH Venture Fund I |
$9 million |
1993 |
ARCH Venture Fund II |
$31 million |
1996 |
ARCH Venture Fund III |
$107 million |
1999 |
ARCH Venture Fund IV |
$175 million |
2000 |
ARCH Venture Fund V |
$380 million |
2003 |
ARCH Venture Fund VI |
$350 million |
2007 |
ARCH Venture Fund VII |
$400 million |
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