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Nantahala Capital Management

North America, Connecticut, United States, New Canaan

Description

Nantahala Capital Management is a prominent hedge fund established in 2004 by Daniel Mack, operating out of New Canaan, Connecticut. Unlike traditional venture capital firms, Nantahala primarily focuses on public equity markets, employing an event-driven strategy that includes special situations and distressed debt investments. The firm is known for its deep fundamental research and opportunistic approach to identifying undervalued assets and unique market dislocations.

The core of Nantahala's investment thesis revolves around exploiting corporate events such as mergers, acquisitions, spin-offs, and restructurings, as well as investing in companies facing temporary financial distress. This strategy typically involves taking significant positions in publicly traded companies. The firm manages substantial capital, with its assets under management (AUM) frequently reported around $1.5 billion in recent years, reflecting its capacity to deploy considerable capital across its portfolio.

While primarily a public market investor, Nantahala Capital Management does engage in private investments, though these are distinct from early-stage venture capital. Their private deal participation often takes the form of Private Investments in Public Equity (PIPEs) or pre-IPO rounds, targeting later-stage companies that are either nearing a public listing or have recently completed a SPAC merger. For instance, the firm was a participant in a $100 million PIPE for electric vehicle manufacturer Canoo (GOEV), demonstrating their willingness to commit substantial capital to such opportunities. These private investments align with their special situations mandate, seeking value in complex or transitional corporate structures.

Given their hedge fund nature and focus on significant, often later-stage, private and public market opportunities, Nantahala's typical investment "check sizes" are considerably larger than those of early-stage VC firms. For their private investments, which are typically growth equity or pre-IPO, their initial commitments can range from approximately $5 million for smaller allocations in larger rounds, extending up to $50 million or more for significant strategic stakes. This reflects their capacity as a large institutional investor rather than a traditional seed or Series A venture capital provider.

Investor Profile

Nantahala Capital Management has backed more than 44 startups, with 12 new investments in the last 12 months alone. The firm has led 9 rounds, about 20% of its total and boasts 27 exits across its portfolio.

Investment Focus Highlights

  • Concentrates on Post Ipo Equity, Series C, Series Unknown rounds (top funding stages).
  • Majority of deals are located in United States, Israel, Canada.
  • Strong thematic focus on Biotechnology, Health Care, Therapeutics.
  • Led 3 rounds in the past year.
  • Typical check size: $5M – $50M.

Stage Focus

  • Post Ipo Equity (95%)
  • Series C (2%)
  • Series Unknown (2%)

Country Focus

  • United States (82%)
  • Israel (7%)
  • Canada (5%)
  • Germany (2%)
  • Sweden (2%)
  • Norway (2%)

Industry Focus

  • Biotechnology
  • Health Care
  • Therapeutics
  • Pharmaceutical
  • Medical
  • Medical Device
  • Biopharma
  • Health Diagnostics
  • Manufacturing
  • Genetics
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FAQ

Frequently Asked Questions

Learn who this investor regularly partners with—both firms and angels—and explore their latest activity.

Who does Nantahala Capital Management frequently co-invest with?

EcoR1 Capital
North America, California, United States, San Francisco
Co-Investments: 4
OrbiMed
North America, New York, United States, New York
Co-Investments: 5
Samsara BioCapital
North America, California, United States, Palo Alto
Co-Investments: 5
Adage Capital Management
North America, Massachusetts, United States, Boston
Co-Investments: 4
Woodline Partners
North America, California, United States, San Francisco
Co-Investments: 4
Frazier Life Sciences
North America, California, United States, Menlo Park
Co-Investments: 4
Perceptive Advisors
North America, New York, United States, New York
Co-Investments: 8
VC
North America, Georgia, United States, Alpharetta
Co-Investments: 5
Armistice Capital
North America, New York, United States, New York
Co-Investments: 4
SC
North America, Oregon, United States, Bend
Co-Investments: 8

What are some of recent deals done by Nantahala Capital Management?

Quince Therapeutics

South San Francisco, California, United States

Quince Therapeutics is developing treatments for Alzheimer's and other degenerative disorders.

BiotechnologyHealth CareMedicalPharmaceuticalTherapeutics
Post Ipo EquityJun 12, 2025
Amount Raised: $22,000,000
Verastem Oncology

Needham, Massachusetts, United States

Verastem is a biopharmaceutical company developing new medicines to improve the lives of patients with RAS/MAPK pathway-driven cancers.

BiopharmaBiotechnologyPharmaceutical
Post Ipo EquityApr 25, 2025
Amount Raised: $75,000,000
Rezolute

Louisville, Colorado, United States

Rezolute is a clinical-stage biopharma specializing in the development of drug therapies for patients with metabolic and orphan diseases.

BiotechnologyDiabetesHealth CareTherapeutics
Post Ipo EquityApr 23, 2025
Amount Raised: $96,900,000
Opus Genetics(formerly Ocuphire Pharma)

Farmington Hills, Michigan, United States

Ocuphire Pharma, a clinical-stage biopharmaceutical company, develops and commercializes therapies for patients with ophthalmic disorders.

BiopharmaBiotechnologyPharmaceutical
Post Ipo EquityMar 21, 2025
Amount Raised: $20,000,000
BIOMx

Ness Ziona, HaMerkaz, Israel

BIOMx is a microbiome therapeutics company developing synbio phage therapies to eradicate harmful bacteria in chronic diseases.

BiotechnologyHealth CareTherapeutics
Post Ipo EquityFeb 26, 2025
Amount Raised: $12,000,000
Edesa Biotech

Markham, Ontario, Canada

Edesa develops treatments for dermatological and anorectal diseases. Edesa merged with Stellar Biotechnologies in 2019.

BiotechnologyLife Science
Post Ipo EquityFeb 13, 2025
Amount Raised: $10,509,103
Grace Therapeutics

Laval, Quebec, Canada

Grace Therapeutics is an emerging biopharmaceutical company.

BiotechnologyHealth CareMedicalPharmaceuticalTherapeutics
Post Ipo EquityFeb 10, 2025
Amount Raised: $10,467,142
Palvella Therapeutics

Wayne, Pennsylvania, United States

Palvella Therapeutics focuses on relentlessly and selflessly serving abandoned patient populations with therapies.

BiotechnologyHealth CareLife ScienceTherapeutics
Post Ipo EquityDec 13, 2024
Senti Biosciences

South San Francisco, California, United States

Senti Biosciences is a biotechnology company that focuses on synthetic biology and gene circuit engineering for therapeutic applications.

BiotechnologyHealth CareMedicalTherapeutics
Post Ipo EquityDec 2, 2024
Amount Raised: $47,600,000
Apyx Medical

Clearwater, Florida, United States

Apyx Medical manufactures digital electrosurgical generators and accessories for the operating room and surgicenter.

Health CareManufacturingMedical Device
Post Ipo EquityNov 8, 2024
Amount Raised: $7,000,000