European investment powerhouse Sofinnova Partners has announced a significant fundraising milestone, securing €1.2 billion
(approximately $1.3 billion) to fuel its next wave of life sciences and healthcare investments. The announcement, made on Tuesday, marks a substantial expansion of the firm’s investment capabilities.
The newly raised capital will enable Sofinnova to support between 50 and 60 emerging companies focused on addressing critical health and sustainability challenges, according to Chairman Antoine Papiernik. This latest funding round brings Sofinnova’s total assets under management to more than €4 billion, reinforcing its position as a leading force in biotech venture capital.
Since its founding in 1972, Sofinnova has established itself as one of the industry’s most active investors in biotechnology. The firm’s track record includes backing 21 biotech companies since 2022, with investments spanning various therapeutic approaches and disease categories. Notable recent investments include Chroma Medicine, which underwent a merger with Nvelop Therapeutics in late 2024 to form nChroma Bio. The firm also backed CinCor Pharma and Amolyt Pharma, both of which were subsequently acquired by AstraZeneca in 2023 and 2024, respectively.
While specific allocation details for the new funds weren’t disclosed, Sofinnova’s investment strategy encompasses multiple areas, including drug development startups, medical device companies, and digital therapeutics ventures. The firm indicated that more detailed information about individual funds would be released as they reach their final closing stages.
This fundraising achievement represents one of the first major capital raises by a life sciences venture firm in 2025. It follows a year where several prominent investors, including Arch Venture Partners, Forbion, and Flagship Pioneering, each secured more than $2 billion in new funding, despite challenging market conditions for fundraising.
The biotech investment landscape has evolved significantly since its peak in 2021, when venture capital firms raised a record 137 new funds totaling $30.8 billion, according to PitchBook data. 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, more
concentrated deals, with investors primarily focusing on companies that demonstrate strong clinical evidence and clear paths to commercialization, as noted by PitchBook analyst Kazi Helal. This shift has created a more challenging environment for seed and early-stage investments, particularly as new fund formations by emerging managers have declined and exit opportunities have become more limited.
Despite these market dynamics, Sofinnova’s successful fundraising indicates continued investor confidence in life sciences venture capital, particularly from established firms with proven track records. The substantial size of this new fund suggests that despite broader market uncertainties, there remains significant appetite for investment in innovative healthcare and biotechnology companies.
The firm’s investment focus aligns with critical areas of medical need and technological advancement in the healthcare sector. By maintaining a diversified approach across different therapeutic areas and development stages, Sofinnova aims to capitalize on opportunities throughout the life sciences ecosystem while supporting the next generation of breakthrough medical innovations.