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Lilly Asia Ventures closes $700M Fund VII - InforCapital

Lilly Asia Ventures (LAV) has successfully closed its seventh healthcare fund, LAV Fund VII, at its hard cap of $700 million.

AM
Alvaro de la Maza

Partner at Aninver

Key Takeaways

  • Sector: Biotechnology & Life Sciences.
  • Geography: China.

Analysis

Lilly Asia Ventures (LAV) has closed its seventh healthcare fund, LAV Fund VII, at its hard cap of $700 million, including an 8% general partner (GP) commitment. This marks a strategic recalibration from its previous fund, LAV Fund VI, which totaled $1.35 billion. Notably, Fund VII does not include a parallel opportunity fund, reflecting a more focused investment approach.

Initially targeting $900 million, LAV adjusted its goal to $650 million after consultations with limited partners (LPs), ultimately exceeding this target due to strong demand. The fund attracted a diverse group of investors, including sovereign wealth funds, pension funds, endowments, family offices, and corporate entities.

Established in 2008 as the corporate venture arm of Eli Lilly, LAV became an independent entity in 2011. With offices in Shanghai, Hong Kong, and Palo Alto, the firm specializes in life sciences investments, particularly in the biopharmaceutical, medical device, and diagnostics sectors.

The reduction in fund size aligns with a broader contraction in China's healthcare investment. After peaking at $21.7 billion in 2021, investments declined to $10.7 billion in 2022, $6.8 billion in 2023, and $4.2 billion in 2024. This downturn is driven by biotech sell-offs, valuation uncertainties, and exit challenges.

Despite these headwinds, LAV remains an active investor. In 2025, it backed StairMed Technology, Rona Therapeutics, and EnChannel Medical, and co-led a $100 million Series C round for Pulnovo Medical, a company with global expansion prospects.

LAV's strategic investments have delivered notable results. Gracell Biotechnologies, supported by LAV before and after its 2021 NASDAQ IPO, was acquired by AstraZeneca for $1 billion, highlighting its ability to identify and support high-potential ventures.

With LAV Fund VII, Lilly Asia Ventures continues to show its commitment to healthcare innovation, adapting its strategies to thrive amid evolving market conditions.