MPM Capital, the private equity firm that invests in healthcare companies from offices in San Francisco, Boston and Munich, has said it is close to raising $900m (€903m) for its third bioventures fund.

The bumper commitment goes against the grain of current US venture capitalism. The dearth of good early-stage investment opportunities in all other sectors has led to several firms reducing the funds they raised in the late 1990s and early 2000s.