New formed firm Arthurian Life Sciences will manage the £100m Welsh Life Sciences Fund.
The Welsh Government committed £50m to the new vehicle, while Arthurian will raise at least another £50m over the next few years.
The fund will initially make investments ranging from £500k to £5m in life sciences, biotech and medical device companies based in (or with plans to relocate to) Wales.
Based in Cardiff, Arthurian is chaired by biotech entrepreneur and investor Sir Chris Evans (Excalibur Fund Managers).
The Board includes David Baynes, Peter Grant, Sir John Banham, Lord Hutton, Trevor Jones, and Jeremy Curnock Cook.