European venture firm channels new fund into drug development, medical devices, and emerging life sciences companies
Sofinnova Partners, one of Europe’s oldest and largest venture capital firms, announced Monday that it has raised 650 million euros ($750 million) for a new fund aimed at supporting innovative biotech and medtech startups.
The majority of the fund will back biotechnology companies developing new drugs, while roughly 20% to 30% will go toward medical device makers, according to Maina Bhaman, one of Sofinnova’s partners. The firm has already invested in five companies, including radiopharmaceutical startup Actithera and inflammatory disease drugmaker Elevara Medicines.
This fundraising comes amid a resurgence of investment in life sciences. After a slow start to the year, new fund formation rebounded in the third quarter, with $6.1 billion raised between July and September, compared to $4.5 billion over the previous six months, according to investment bank William Blair.
Other venture firms, including Deerfield Management, Omega Funds, and Atlas Venture, have also closed new investment vehicles this year. Last week, Medicxi, another European life sciences investor, raised 500 million euros.
Sofinnova’s New Fund Strategy
Founded 55 years ago, Sofinnova manages over 4 billion euros in assets and has a history of being the first investor in young life sciences companies. The firm also backs spinouts from larger pharmaceutical companies, particularly those built around a single asset.
This year, Sofinnova has already announced seven investments in therapeutics makers, including blood disease drug developer Hemab Therapeutics, protein degrader startup GlycoEra, and bispecifics specialist T-Therapeutics. The firm also launched Biovelocita II, a Europe-focused fund supported by Amgen, Bristol Myers Squibb, and Pfizer Ventures.
Market Challenges and Investor Hesitation
Despite the recent upturn, early-stage life sciences companies faced funding challenges earlier this year. Investors were cautious about novel therapies, making “first-in-class opportunities” harder to secure.
Bhaman noted that some of the hesitancy stems from regulatory and political uncertainties, including potential pharmaceutical tariffs, leadership changes at the FDA, and inconsistent regulation of rare disease treatments.
“For later-stage investment rounds, there is often a pause,” Bhaman said. “Especially in rare diseases and gene therapies, investors are carefully considering whether regulatory conditions will remain stable.”
Conclusion:
With $750 million in new capital, Sofinnova Partners is poised to fuel innovation in biotech and medtech startups, supporting breakthrough therapies and cutting-edge medical devices. For anyone following life sciences investment trends, this fund signals strong momentum in the European biotech ecosystem. Follow, share, and comment to stay updated on the latest startup and venture capital developments.
