Proximal Ventures raises $27.5M debut fund for AI in drug development

Proximal Ventures has closed a $27.5 million debut fund to back pre-seed and seed startups that apply AI to drug development services — a first-time fund landing in one of the toughest fundraising environments first-time managers have faced in years.

The solo firm belongs to Sahir Raoof, a former principal at SignalFire and an executive at two healthcare startups. His thesis is specific: AI can automate the tools, infrastructure, and services that pharmaceutical companies have long outsourced to specialized providers.

That's a meaningful bet because the money at stake is enormous. Pharma companies historically pay outside firms to synthesize thousands of molecular compounds, work out how to manufacture drugs at scale, and analyze clinical trial data. Raoof argues AI-native startups can deliver those same services faster and cheaper, capturing billions of dollars in industry spending.

The fund closed despite conditions that have pushed many first-time managers out of the market entirely. While established venture firms continue to attract capital, debut fund managers are struggling to raise anything at all.

What is Proximal actually investing in?

Proximal writes checks between $500,000 and $1.5 million, targeting pre-seed and seed-stage companies. The firm has already backed six startups from the fund.

Its disclosed portfolio includes ChronicleBio, co-founded by former OpenAI executive Fidji Simo. ChronicleBio uses AI to analyze biological and medical data to better understand chronic diseases and identify potential treatments.

The check size tells you where Raoof sees the opening. Small, early bets on companies built around a service AI can undercut on price and speed — not large checks into drug discovery itself.

Takeaway: this is a services-automation thesis applied to pharma, applied early and in small slices.

Why bet on services rather than software?

Raoof's core observation is about how pharma spends money. "For a long time, the assumption was that pharma is not a great buyer of software, but a really good buyer of services," he told TechCrunch.

That history shapes the opportunity. If pharma buys services rather than tools, then AI startups that become the service provider — rather than selling software to incumbents — position themselves directly in the spending stream.

Raoof points to precedent in other industries. Some of the most valuable AI applications so far have appeared in service-oriented sectors like law and finance, he said. He sees pharmaceutical services following the same pattern.

The mechanism is straightforward. AI compresses the labor cost of work like compound synthesis planning, manufacturing process development, and clinical data analysis. A startup with that cost structure can underbid incumbent providers while protecting margin.

Takeaway: the pitch is that AI turns pharma's service vendors from a cost problem into a startup category.

Who is Sahir Raoof?

The fund's credibility rests heavily on Raoof's operating record. Before spending two years as a principal at SignalFire, he led business development at Iterative Health, a clinical trial recruitment startup. Before that, he oversaw partnerships at Flatiron Health, the oncology data company Roche acquired for $1.9 billion in 2018.

That background matters for the specific problem he plans to solve for founders. "If you're building a company that's selling into the life sciences, one of the hardest things to do is starting that initial commercial flywheel," Raoof said.

Limited partners — the investors in VC funds — cited exactly this combination when explaining their backing: sales experience, deep understanding of the healthcare ecosystem, and extensive industry relationships. In practice, that means Raoof can both spot promising startups and help them land their first customers.

Takeaway: the fund's edge is distribution help, not just capital.

Who backed the fund?

Proximal's limited partners include venture firms SignalFire and Kleiner Perkins, plus Bertelsmann Healthcare Investments. Individual investors include Dimension Capital co-founders Nan Li and Zavain Dar.

One backer stands out for her regulatory pedigree. Amy Abernethy, co-founder of Highlander Health and former principal deputy commissioner of the FDA, is also an investor. She first met Raoof when they worked together at Flatiron Health, where she served as chief medical officer.

Abernethy told TechCrunch that Raoof's ability to build relationships and spot industry bottlenecks made a lasting impression. She said she is convinced his abilities, along with his understanding of what the healthcare market needs, will make him a successful investor.

It is those qualities, she added, that have already helped Proximal invest alongside some of the better-known, much larger funds — a notable feat for a debut vehicle at this check size.

Takeaway: institutional names and a former FDA deputy commissioner are staking the thesis.

Why does a $27.5M fund matter?

The number itself is small by venture standards. But the context makes it significant. First-time fund managers are navigating one of the worst fundraising environments in years, and a solo debut closing at $27.5 million signals that limited partners still write checks when the operator's background fits the thesis tightly.

The stakes are also structural. Pharmaceutical R&D spending flows heavily through outsourced service providers. If AI genuinely automates chunks of that work, the value doesn't stay with the incumbents — it moves to whoever rebuilds the services on AI infrastructure first. That's the market Proximal is trying to get into at the earliest possible stage.

Raoof's framing also lands at a moment when AI's clearest commercial wins — in law, in finance — have come from automating billable expertise. Drug development services are, in his reading, the next domino.

Takeaway: a small fund positioned early against a very large pool of pharma spending.

What comes next?

The proof points to watch are already on the table: six portfolio companies, checks of $500,000 to $1.5 million, and ChronicleBio as the named bet on AI-driven analysis of biological and medical data. If Raoof's commercial-flywheel playbook works, Proximal should keep co-investing alongside larger funds while its companies win service contracts from pharma buyers — the test of whether a services-first AI thesis can actually convert into revenue.