Novo Holdings, the investment firm behind pharmaceutical giant Novo Nordisk, is committing $25 million over five years to a new, early-stage biotech incubator at the Broad Institute, a research center affiliated with both Harvard and MIT.
Novo Holdings’ commitment is the latest example of an ongoing push among biotech venture capitalists to invest in younger and younger startups.
Novo Holdings’s venture arm will call the new incubator the Novo Broad Greenhouse. It will back roughly ten new projects or companies at a time — all of which will involve basic research. If some early work shows promise, Novo Holdings will put additional money into the project before spinning it out into a new company.