A major European venture capital firm has announced a significant funding milestone, securing €1.2 billion (approximately $1.3 billion) to support investments in healthcare and life sciences companies. Sofinnova Partners, which made the announcement on Tuesday, plans to use these funds to back between 50 and 60 new enterprises focused on addressing global health and sustainability challenges.
The fresh capital injection bolsters Sofinnova’s position as one of the biotechnology sector’s most active investors. Since 2022, the firm has provided funding to 21 biotech companies across various
therapeutic approaches and disease categories. Notable investments include their backing of Chroma Medicine, which recently combined with Nvelop Therapeutics to create nChroma Bio. The firm also supported CinCor Pharma and Amolyt Pharma, both of which were subsequently acquired by AstraZeneca in 2023 and 2024, respectively.
This latest fundraising achievement brings Sofinnova’s total assets under management to more than €4 billion. The firm, which began operations in 1972, maintains diverse investment strategies
encompassing drug development startups, medical device companies, and digital therapeutics ventures. Specific details about how the new funds will be distributed across these different investment categories will be disclosed when individual funds reach their final closing stages.
The announcement represents one of the first major funding
developments in the life sciences venture capital space for 2025. Despite what industry experts characterized as a challenging fundraising environment in 2024, several prominent investors secured substantial funds. These included Arch Venture Partners, Forbion, and Flagship Pioneering, each of which announced funds exceeding $2 billion.
The biotech funding landscape has evolved significantly since its peak in 2021, when 137 new venture capital funds collectively raised $30.8 billion during a period of unprecedented investment and IPO activity in the healthcare and life sciences sectors. By 2024, the number of new funds had decreased to 38, though the total capital raised remained relatively robust at $16 billion.
Current investment trends show a shift toward larger but fewer deals, with investors focusing their resources on companies that can demonstrate validated clinical data and clear paths to
commercialization. This strategic approach, however, presents challenges for seed and early-stage investments. According to PitchBook analyst Kazi Helal, the reduced number of new fund closures among emerging managers and weak exit activity is likely to restrict capital availability for early-stage ventures.
Antoine Papiernik, Sofinnova’s chairman, emphasized the firm’s commitment to supporting entrepreneurs tackling critical health and sustainability issues. The substantial new funding positions Sofinnova to continue its role as a key player in advancing innovative healthcare solutions and biotechnology developments across Europe and beyond.
This development occurs during a period of transformation in the biotech investment landscape, where despite overall market challenges, established venture capital firms continue to demonstrate their ability to raise significant capital for life sciences investments. The sustained flow of substantial funding into the sector suggests ongoing confidence in the potential of biotechnology innovations to address pressing healthcare needs, even as the industry adapts to evolving market conditions and investment priorities.