In Long Venture Downturn, Flagship And Canaan Are In The Money

Two veteran life-science venture firms are pushing forward with new funds even as many of their peers can't persuade backers to open their wallets.

Add two more life-science investors to the list of survivors of the Great Recession. Canaan Partners and Flagship Ventures have announced new funds this week, adding nearly $500 million to the cash that could flow the next few years into biopharma, device and other health-care companies.

Canaan announced the close of its ninth fund with $600 million in commitments, about $200 million of which is earmarked for health care with the rest going to high-tech, which...

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