Cape Fear BioCapital is a Durham, North Carolina-based early-stage venture capital firm founded by three biotech operators-turned-investors to close a regional funding gap: North Carolina's research ecosystem produced world-class science but lacked access to early capital and experienced operators. The firm writes first checks and builds hands-on alongside founders at the earliest stage.
Cape Fear BioCapital invests at the pre-seed and seed stage in North Carolina-based therapeutics and human health companies emerging from Duke, UNC, and NC State research, spanning small molecule therapeutics, biologics/RNAi, medtech, oncology, respiratory disease, cell biology platforms, cell and gene therapy, mRNA, genomics, proteomics, diagnostics, and AI-driven drug discovery.
The firm typically backs companies within three years of an IND filing, positions itself as a first-check investor, and aims to invest in more than 40 seed-stage companies within its first decade.
In September 2026, Cape Fear BioCapital announced the final close of Fund I; the total amount raised was not disclosed in the announcement. An SEC Form D filing from May 2024 showed $7.5 million raised toward the fund at that point, though this predates the final close and may not reflect the fund's ultimate size.
Moore Strategic Ventures, the investment firm of Moore Capital Management founder Louis M. Bacon, anchors the fund, alongside Parexel and a curated group of North Carolina biotech operators, founders, and executives. The firm plans to raise a $100 million follow-on fund to expand its pipeline.
Leadership
Ed Field, Jimmy Melton, and Dave Ousterout, PhD, are Co-Founders and General Partners. Ed Field brings more than 25 years of biotech leadership and three prior exits. Jimmy Melton has more than 30 years in life sciences and previously served as Managing Director of Carolina Research Ventures.
Dave Ousterout has more than 15 years of experience and co-founded Locus Biosciences. Together, the three have founded and led multiple North Carolina ventures, raising more than $370 million in financing and securing more than $3 billion in strategic contracts and collaborations.
Investment Strategy
Cape Fear BioCapital typically writes checks between $250,000 and $650,000, aiming to catalyze initial rounds of $1-3 million, and provides hands-on support including team building, governance setup, and milestone planning.
Notable Investments
Other
Ed Field has noted that only 1% of venture capital invested in North Carolina goes to seed or pre-seed stage companies, positioning Cape Fear BioCapital to address that gap.
Ed Field — Co-Founder & General Partner
Jimmy Melton — Co-Founder & General Partner
Dave Ousterout — Co-Founder & General Partner
dave@capefearbiocap.com
United States
