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 enterprises.
The Paris-based venture capital firm plans to utilize these fresh funds to back between 50 and 60 new companies working to address critical global health and sustainability challenges, according to Chairman Antoine Papiernik.
This latest fundraising achievement builds upon Sofinnova’s
established track record as one of the biotechnology sector’s most active investors. Since 2022, the firm has provided backing to 21 different biotech ventures across various therapeutic approaches and disease categories. Notable investments include Chroma Medicine, which recently merged with Nvelop Therapeutics to create nChroma Bio. The firm also backed CinCor Pharma and Amolyt Pharma, both of which were subsequently acquired by pharmaceutical giant AstraZeneca in deals completed in 2023 and 2024, respectively.
With this new injection of capital, Sofinnova, which was established in 1972, now oversees more than €4 billion in total assets under management. While specific allocation details for the newly raised funds were not disclosed, the firm indicated that its investment strategy encompasses various healthcare segments, including drug development startups, medical device companies, and digital
therapeutics ventures. The company stated it would release additional information about individual fund allocations as they reach their final closing stages.
This fundraising marks one of 2025’s first major capital raises by a prominent life sciences venture firm. It follows a notable 2024 that saw several leading investors, including Arch Venture Partners, Forbion, and Flagship Pioneering, each secure new funds exceeding $2 billion, despite what industry experts characterized as challenging fundraising conditions.
The biotech funding landscape has evolved significantly since its peak in 2021, when venture capital firms launched 137 new funds totaling $30.8 billion, according to PitchBook data. This surge coincided with unprecedented levels of investment and initial public offerings 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 indicate a shift toward larger but fewer deals, with investors demonstrating a preference for companies that show proven clinical results and clear paths to commercialization, according to PitchBook analyst Kazi Helal. This trend has created a more challenging environment for early-stage companies and seed investments, as the reduced number of new fund closures among emerging fund managers and limited exit opportunities has restricted capital recycling in the market.
The announcement represents a significant vote of confidence in the life sciences sector, despite ongoing market uncertainties.
Sofinnova’s continued commitment to investing in innovative healthcare solutions suggests sustained opportunities in the biotech and healthcare sectors, even as investment patterns evolve to favor more established ventures with demonstrated clinical success.
The firm’s strategy of diversifying across multiple healthcare segments, from traditional drug development to digital health solutions, positions it to capitalize on various opportunities within the evolving healthcare landscape while maintaining its role as a leading European venture capital provider in the life sciences sector.