European investment powerhouse Sofinnova Partners announced Tuesday it has secured €1.2 billion (approximately $1.3 billion) in new funding to support its continued investment in healthcare and life sciences ventures.
The substantial capital raise will enable Sofinnova to back between 50 and 60 new companies focused on addressing critical global health challenges and sustainability issues, according to Chairman Antoine Papiernik.
Founded in 1972, Sofinnova has established itself as one of the biotechnology sector’s most active investors. Since 2022, the firm has provided funding to 21 different biotech enterprises across various therapeutic approaches and disease areas. Notable investments include Chroma Medicine, which recently combined with Nvelop Therapeutics to create nChroma Bio. The firm also backed CinCor Pharma and Amolyt Pharma, both of which were later acquired by AstraZeneca in deals completed in 2023 and 2024, respectively.
This latest fundraising achievement brings Sofinnova’s total assets under management to more than €4 billion. While specific allocation details for the new capital were not disclosed, the firm’s investment strategy encompasses multiple areas including drug development startups, medical device companies, and digital therapeutic ventures. The company indicated it would provide more detailed information about individual fund allocations once they reach their final closing stages.
The announcement represents one of 2025’s first major capital raises by a leading life sciences venture capital firm. Despite what industry experts characterized as a challenging fundraising climate in 2024, several prominent investors including Arch Venture Partners, Forbion, and Flagship Pioneering each announced new funds exceeding $2 billion last year.
Data from PitchBook shows that biotech fund activity reached its peak in 2021, with 137 new funds raising a combined $30.8 billion during a period marked by unprecedented investment and IPO activity in the healthcare and life sciences sectors. While 2024 saw only 38 new funds, the total capital raised remained relatively robust at $16 billion.
Current market trends indicate that investors are concentrating larger amounts of capital into fewer, more substantial deals, with a particular focus on companies that have demonstrated clinical validation and clear paths to commercialization, according to PitchBook analyst Kazi Helal. This shift in investment strategy suggests more challenging conditions for seed-stage and early-phase companies seeking funding.
The difficulties facing early-stage investments are compounded by two main factors: a decrease in new fund formations among emerging investment managers and limited exit opportunities in the current market environment. These conditions are expected to restrict the flow of capital to newer ventures in the biotechnology space.
Sofinnova’s successful fundraising efforts, despite these market challenges, underscore the continued investor confidence in the life sciences sector and the firm’s track record of identifying promising healthcare innovations. The substantial new funding positions Sofinnova to maintain its influential role in shaping the future of biotechnology and healthcare advancement across Europe and beyond, while providing crucial support to companies developing
next-generation therapeutic solutions.