The Proximal Ventures fund has closed at $27.5 million, providing fresh capital for early-stage startups using artificial intelligence in drug development. Founded by former SignalFire investor Sahir Raoof, the venture firm focuses on technologies that improve pharmaceutical research and services.
Announced Nov. 10, the debut fund will support startups working on drug discovery, clinical trials, manufacturing and related infrastructure—with plans to invest between $500,000 and $1.5 million per company.
Proximal Ventures Fund Targets AI Drug Development
Proximal Ventures focuses on pre-seed and seed-stage companies developing AI tools for the life sciences industry.
Pharmaceutical companies frequently outsource specialized work, including chemical synthesis, clinical trial analysis and manufacturing processes. Raoof believes AI can automate portions of these services, reducing costs and development timelines.
The firm is particularly interested in companies that improve existing pharmaceutical workflows rather than focusing exclusively on discovering new drug molecules.
Proximal has already invested in seven startups, including ChronicleBio. The company, co-founded by former OpenAI executive Fidji Simo, applies AI to biological and medical data to study chronic diseases and identify potential treatments.
Other companies are pursuing similar opportunities. TechAmerica previously covered Onepot AAI’s$13 million funding round, which supported automated chemical synthesis for drug development.
Sahir Raoof Brings Pharmaceutical Industry Experience
Before launching Proximal Ventures, Raoof spent two years as a principal at SignalFire. He previously led business development at clinical trial recruitment startup Iterative Health.
He also managed partnerships at Flatiron Health, an oncology data company. Pharmaceutical giant Roche acquired Flatiron Health for $1.9 billion in 2018.
Raoof’s experience helped attract investors despite a challenging fundraising environment for first-time venture capital managers.
Backers include SignalFire, Kleiner Perkins and Bertelsmann Healthcare Investments. Individual investors include Dimension Capital co-founders Nan Li and Zavain Dar.
Amy Abernethy, Highlander Health co-founder and former FDA principal deputy commissioner, also invested. She previously worked with Raoof at Flatiron Health.
AI Investment Expands Across Pharmaceutical Services
Proximal’s strategy reflects growing interest in using AI beyond the earliest stages of drug discovery.
Investors are also funding technologies that automate laboratory experiments and generate biological data. TechAmerica recently reported on Warp Sciences’ $215 million funding for AI-powered robotic laboratories.
For Proximal, the central opportunity lies in helping pharmaceutical companies complete established tasks more efficiently. Its investments will focus on startups developing commercial tools and services for the life sciences market.
