AI drug discovery firm Enveda raises $311M at $2B valuation
Enveda, a biotech startup using artificial intelligence to identify drug candidates from natural sources, has closed a $311 million Series E round led by Catalio Capital Management. The new funding doubles the company's valuation to $2 billion and will support its pipeline, which includes treatments for severe skin conditions and a therapy to sustain weight loss after GLP-1 discontinuation. The company is among a wave of AI-driven drug developers advancing candidates into human trials, though no such drug has yet received FDA approval.
Enveda’s approach centers on mining the natural world—plants and microbes—for medicinal compounds, a contrast to purely synthetic lab methods. Founder Viswa Colluru previously worked at Recursion Pharmaceuticals before launching Enveda in 2019. The company’s pipeline currently includes human trials for a severe skin condition treatment and a therapy aimed at preserving weight loss after patients stop taking GLP-1 drugs.
The funding round was led by Catalio Capital Management with participation from Iconiq and other investors. This Series E doubles Enveda’s valuation from 12 months ago. The company operates within a broader wave of AI-driven drug developers pushing candidates into clinical testing, though the field has yet to achieve a single FDA-approved AI-discovered drug.
This funding signals growing investor confidence in AI-driven drug discovery, but the sector still faces a critical test: no AI-discovered drug has yet earned FDA approval. If Enveda’s candidates succeed, patients with severe skin conditions and those managing post-GLP-1 weight maintenance could gain new options. However, the high valuation may also reflect speculative enthusiasm, and setbacks in trials could temper expectations across the field.