In its 53 12 months historical past, Sofinnova Companions has invested in additional than 500 firms. The enterprise capital agency now has €1.2 billion to spend money on extra.
The extra funds have come at a quick clip. Paris-based Sofinnova stated Tuesday that greater than €1 billion of the brand new capital was secured within the final quarter. The agency’s property underneath administration now prime €4 billion.
Sofinnova breaks out its investments into seven classes, which it calls funding methods. These methods span areas equivalent to biotech, medtech, and digital drugs. Sofinnova has invested in firms equivalent to imaginative and prescient issues biotech Tenpoint Therapeutics and neurodegenerative disease-focused Asceneuron.
The agency didn’t say how a lot cash was going to every of its methods, including that particulars on particular person funds can be disclosed upon their last closings. The cash is coming from institutional traders, sovereign wealth funds, firms, and household places of work.
“With the brand new funds, we anticipate supporting 50 to 60 new firms, empowering a brand new wave of entrepreneurs tackling a few of the world’s most urgent well being and sustainability challenges,” Chairman and Managing Accomplice Antoine Papiernik stated in a ready assertion.
In a report detailing the outlook for healthcare and life sciences in 2025, Pitchbook stated enterprise funding can be outlined by fewer however bigger offers and funds. Macroeconomic pressures are accelerating this pattern. Rates of interest stay excessive and credit score markets are tight, constraining the supply of enterprise capital, the report stated. That prompts traders to prioritize de-risked alternatives.
“Traders are gravitating towards late-stage firms with sturdy medical validation, scalable applied sciences, and a transparent path to monetization by means of licensing or acquisitions,” Pitchbook stated within the report. “This shift is especially evident within the rise of common deal sizes, which have elevated as funding concentrates on fewer, high-impact alternatives.”
Sofinnova isn’t the one European VC agency raking in new capital to deploy throughout recent investments. Final October, Netherlands-based Forbion introduced it had raised greater than €2 billion for 2 funds, bringing its property underneath administration to €5 billion.
By exceeding its fundraising targets, Forbion stated it will likely be in a position to enhance the variety of investments and the scale of the investments. The agency stated the 2 funds will spend money on about 15 new firms. Forbion co-led the $411 million Collection A spherical introduced in January for Verdiva Bio, a biotech advancing to Section 2 testing with an oral GLP-1 weight problems drug.
Photograph: Ta Nu, Getty Pictures
