VelosBio Acquisition, Valuation, Funding & Investors

VelosBio was acquired by Merck for $2.8B in November 2020.

VelosBio acquisition price

$2.8B

Acquired by Merck · Nov 2020

Cumulative funding VelosBio raised

$203M

across 3 funding rounds

Key investors in VelosBio

  • Sofinnova Investments
  • Decheng Capital
  • Surveyor Capital
  • Takeda Ventures
  • Matrix Capital Management
  • Arix Bioscience
  • Chiesi Ventures
  • Pappas Ventures

VelosBio Overview

About VelosBio

VelosBio is a clinical-stage biopharmaceutical company creating ROR1-targeted therapies for hematologic malignancies and solid tumors. Its lead asset, a monoclonal antibody, exploits ROR1 expression on cancer cells absent in healthy tissues, showing efficacy in preclinical lymphoma and lung cancer models. San Diego-headquartered and founded in 2017, VelosBio advanced programs through Phase 1 trials before acquisition by Takeda.


Founded

2017

HQ

United StatesSan Diego, CA

Status

Acquired

Customer focus

B2B

Revenue model

Product sales

Valuation

$100M (Feb 2018)

VelosBio Acquisition

VelosBio was acquired by Merck for $2.8B on 5 November 2020.

Before the acquisition VelosBio had raised $203M across 3 funding rounds.

VelosBio was a privately held, clinical-stage biopharmaceutical company based in San Diego focused on developing first-in-class cancer therapies targeting receptor tyrosine kinase-like orphan receptor 1 (ROR1). The company's lead investigational candidate was VLS-101, an antibody-drug conjugate being evaluated in Phase 1 and Phase 2 clinical trials for the treatment of hematologic malignancies and solid tumors. Merck, through a subsidiary, agreed to acquire all outstanding shares of VelosBio for $2.75 billion in cash in a definitive agreement announced on November 5, 2020. The acquisition was strategically motivated by Merck's focus on strengthening its oncology pipeline with advanced antibody-drug conjugate technology. The deal reflected broader industry momentum in the ADC space, with VelosBio representing a particularly successful early-stage investment having been formed only three years prior to its acquisition. The transaction was represented by Gibson Dunn & Crutcher and J.P. Morgan Securities on the Merck side, while Cooley and Centerview Partners advised VelosBio. The deal closed in December 2020 and was recorded as a $2.7 billion charge to Merck's 2020 financial results.

VelosBio acquisition details
AcquirerDateTypePrice
5 Nov 2020Strategic M&A$2.8B

VelosBio Valuation

VelosBio is currently valued at $100M, based on its seed round in February 2018.

VelosBio valuation by funding round

VelosBio valuation by funding round
DateStageValuation
Feb 2018Seed$100M

VelosBio Funding History

VelosBio has raised a total of $203M across 3 funding rounds.

VelosBio's first fundraising round was a $8M seed round in February 2018. The most recent completed round was a $137M Series B in July 2020.

VelosBio funding rounds

VelosBio funding rounds
DateStageInvestorsRaisedValuationDeal Summary
Jul 2020Series BMatrix Capital Management (lead); Surveyor Capital (lead)$137M-VelosBio Inc. is a San Diego-based clinical-stage biopharmaceutical company developing novel, first-in-class cancer therapies targeting receptor tyrosine kinase-like orphan receptor 1 (ROR1), including antibody-drug conjugates (ADCs) like lead candidate VLS-101 and bispecific antibodies for solid tumors and hematological cancers such as mantle cell lymphoma (MCL). In July 2020, VelosBio completed an oversubscribed $137 million Series B financing round led by Matrix Capital Management and Surveyor Capital (a Citadel company), with participation from new investors including Adage Capital Management LP, Cormorant Asset Management, Farallon, Foresite Capital, Janus Henderson Investors, Logos Capital, OrbiMed, T. Rowe Price Associates, Venrock Healthcare Capital Partners, Viking Global Investors, and Wellington Management Company, joining existing investors Arix Bioscience, Decheng Capital, Pappas Capital, Sofinnova Ventures, and Takeda Ventures. This brought total capital raised to $202 million in gross proceeds from private financings since founding in 2017. Proceeds were allocated to advance clinical development of VLS-101, which had received FDA Fast Track and Orphan Drug designations in August 2020 for MCL, and to expand the ROR1-directed pipeline. Investors highlighted the promising early clinical data for VLS-101 and ROR1's potential as a novel oncology target for monotherapy or combination therapies across various cancers. Shortly after the Series B, in July 2020, Merck & Co. agreed to acquire VelosBio for $2.75 billion in cash to bolster its oncology pipeline with VLS-101, with the deal expected to close by year-end 2020 subject to regulatory approvals; some sources list it at $2.8 billion. This acquisition underscores the rapid value creation post-Series B, positioning VelosBio's assets within Merck's broader oncology efforts.
Oct 2018Series AArix Bioscience (lead); Sofinnova Investments (lead); Takeda Ventures; Decheng Capital; Chiesi Ventures; Pappas Ventures$58M-VelosBio Inc. is a San Diego-based biotechnology company developing cancer therapies targeting receptor tyrosine kinase-like orphan receptor 1 (ROR1), including its lead candidate VLS-101, an antibody-drug conjugate (ADC) in Phase I/II clinical trials for hematologic malignancies and solid tumors. The company received FDA fast track and orphan drug designations for VLS-101 in mantle cell lymphoma. VelosBio also advances next-generation ADCs and bispecific immune-engagers targeting ROR1. In October 2018, VelosBio raised $58 million in an oversubscribed Series A financing round co-led by Arix Bioscience and Sofinnova Investments, with participation from Chiesi Ventures, Decheng Capital, Pappas Ventures, and Takeda Ventures. Arix Bioscience committed $11 million to the round. This followed the company's creation in 2017 and preceded a $137 million Series B in July, bringing total funding to $202 million before its acquisition by Merck. Arix Bioscience reported a 12x return on its $15.71 million investment upon Merck's acquisition of VelosBio. VelosBio was later acquired by Merck for $2.75 billion in cash in 2020, highlighting strong interest in its ROR1-targeted oncology pipeline amid a robust year for biopharma financings. Competitive context includes other firms pursuing ROR1 targets, such as CStone Therapeutics and NBE Therapeutics with related assets like NBE-002 entering Phase I. VelosBio's programs positioned it well in oncology, focusing on tumors like TNBC, NSCLC, CLL, MCL, leukemia, and NHL where ROR1 is expressed.
Feb 2018Seed-$8M$100MVelosBio, a US-based oncology therapy startup founded in 2017, develops antibody-drug conjugates targeting solid tumors and hematological cancers. The company raised $58 million in a Series A funding round in 2018, co-led by Arix Bioscience and Sofinnova Ventures, with participation from Takeda Ventures, Chiesi Ventures, Pappas Ventures, and Decheng Capital. Arix Bioscience invested $11 million for an 11.2% stake, and the round valued VelosBio at approximately $100 million. Prior to the Series A, VelosBio secured $7.7 million in seed funding in February 2018 and joined Johnson & Johnson’s JLabs accelerator. The Series A proceeds funded completion of nonclinical development for lead product candidates and advancement into clinical testing. CEO David Johnson highlighted the strong investor support to drive ambitious growth.

Who has invested in VelosBio?

8 investors have backed VelosBio across its funding rounds, including Sofinnova Investments, Decheng Capital, Surveyor Capital, Takeda Ventures, Matrix Capital Management and Arix Bioscience.

Lead investors include Matrix Capital Management, Surveyor Capital, Arix Bioscience and Sofinnova Investments.


VelosBio Investors

Investors in VelosBio by funding rounds participated
InvestorHQRoundsRoleFirst check
Takeda VenturesUnited StatesSan Diego, CA1ParticipantOct 2018
Decheng CapitalUnited StatesSan Francisco, CA1ParticipantOct 2018
Chiesi VenturesUnited StatesBoston, MA1ParticipantOct 2018
Matrix Capital ManagementUnited StatesBoston, MA1LeadJul 2020
Pappas VenturesUnited StatesDurham, NC1ParticipantOct 2018
Sofinnova InvestmentsUnited StatesSan Francisco, CA1LeadOct 2018

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VelosBio Competitors

VelosBio competitors include listed companies like Kangmei Pharmaceutical Co., AtaiBeckley, Immunome and Samchundang Pharm, and private ones like Shiji Biotechnology and Sail Biomedicines.

Public and private companies comparable to VelosBio
CompanyHQStatusRevenueEBITDAValuationRevenue Multiple
Kangmei Pharmaceutical Co.ChinaChinaPublicly listed$783M$54M$2.8B-
AtaiBeckleyUnited StatesUnited StatesPublicly listed$4M($659M)$2.7B828.3x
ImmunomeUnited StatesUnited StatesPublicly listed$7M($221M)$2.7B984.3x
Samchundang PharmSouth KoreaSouth KoreaPublicly listed$169M$15M$2.8B-
Shiji BiotechnologyChinaHefeiPrivate--$2.7B-
Sail BiomedicinesUnited StatesBoston, MAPrivate--$2.6B-

VelosBio Public Comps

VelosBio is no longer listed, but its public comps include Kangmei Pharmaceutical Co., AtaiBeckley, Immunome, Samchundang Pharm, Sunshine Lake Pharma, Precigen, Pharvaris, Disc Medicine, Almirall and Yili Chuannig Biotech.

Last FYEV/RevenueEV/EBITDA
RevenueEBITDALast FYLTM2027ELast FYLTM2027E
Kangmei Pharmaceutical Co.$783M$54M3.3x-48.0x-
AtaiBeckley$4M($659M)611.9x828.3x(3.8x)(9.3x)
Immunome$7M($221M)317.3x984.3x(10.0x)(7.8x)
Samchundang Pharm$169M$15M16.7x-184.7x-
Sunshine Lake Pharma$718M$163M4.6x-20.0x-
Precigen$10M($247M)297.2x17.0x(11.7x)39.5x
Pharvaris-($207M)--(11.1x)(10.8x)
Disc Medicine-($236M)--(8.5x)(7.4x)

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Common questions about VelosBio

When was VelosBio founded?VelosBio was founded in 2017.
Where is VelosBio headquartered?VelosBio is headquartered in San Diego, CA, United States.
Is VelosBio publicly listed?No, VelosBio was acquired by Merck in November 2020.
Who acquired VelosBio?VelosBio was acquired by Merck in November 2020.
How much was VelosBio acquired for?VelosBio was acquired for $2.8B in November 2020.
What is VelosBio's valuation?VelosBio was last valued at $100M in its seed round in February 2018.
How much funding has VelosBio raised?VelosBio has raised $203M across 3 funding rounds.
What was VelosBio's last funding round?VelosBio's last funding round was a $137M Series B in July 2020, led by Matrix Capital Management and Surveyor Capital.
Who are VelosBio's investors?VelosBio's investors include Takeda Ventures, Decheng Capital, Chiesi Ventures, Matrix Capital Management, Pappas Ventures, Sofinnova Investments, Arix Bioscience and Surveyor Capital.
Which companies are comparable to VelosBio?Companies comparable to VelosBio include Kangmei Pharmaceutical Co., AtaiBeckley, Immunome, Samchundang Pharm, Shiji Biotechnology and Sail Biomedicines.

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