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I run a biotech fund and the strongest deal I've seen all year is a pure software play. Am I allowed to write that check? Or is it blocked by my thesis?

1 See in Base
0
Usually, a fund is expected to invest within its stated thesis. A biotech fund writing a pure software check may be possible, but it depends on:

- your fund documents and LP expectations
- whether the software company can reasonably fit your sector thesis
- how material the deviation is

Your thesis is foundational because it defines what you invest in by sector, stage, and geography, and LPs underwrite that strategy. If this is truly off-thesis, it can create alignment issues with LPs. In practice:

- if it fits a broader healthcare / biotech-enabling thesis, it may work
- if it is clearly unrelated software, treat it cautiously and discuss with counsel and key LPs

Reference:
- https://decilegroup.com/articles/the-investment-thesis

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