In a significant boost to life sciences investment, European venture capital powerhouse Sofinnova Partners has announced the successful raising of €1.2 billion (approximately $1.3 billion) to support healthcare and life sciences ventures. The funding, revealed on Tuesday, marks a major expansion of the firm’s investment
capabilities.
The newly secured capital will enable Sofinnova to extend its support to between 50 and 60 emerging companies, according to Chairman Antoine Papiernik. These investments will target organizations working to address critical global health challenges and sustainability issues.
Established in 1972, Sofinnova has built a reputation as one of the sector’s most active investors. Since 2022, the firm has invested in 21 different biotech enterprises, demonstrating its commitment to diverse therapeutic approaches and disease areas. Notable investments include their backing of Chroma Medicine, which recently merged 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.
With this latest fundraising achievement, Sofinnova’s total assets under management have surpassed €4 billion. While specific allocation details across their investment strategies remain undisclosed, the firm maintains a broad focus encompassing drug development startups, medical device companies, and digital therapeutics ventures. The company indicated that more detailed information about individual funds would be released as they reach their final closing stages.
This fundraising announcement represents one of the first major capital raises by a leading life sciences venture firm in 2025. It follows a notable 2024, during which several prominent investors, including Arch Venture Partners, Forbion, and Flagship Pioneering, each secured funds exceeding $2 billion, despite challenging fundraising conditions.
Industry data from PitchBook reveals a significant shift in biotech investment patterns since the sector’s peak in 2021, when 137 new venture capital funds raised $30.8 billion during a period of unprecedented investment and IPO activity in healthcare and life sciences. 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 preference for larger, more concentrated deals, with investors focusing on companies that can demonstrate proven clinical results and clear paths to
commercialization, according to PitchBook analyst Kazi Helal. This shift has created a more challenging environment for seed and early-stage investments, particularly as new fund formations among emerging managers have become scarcer and exit opportunities have diminished.
The impressive fundraising by Sofinnova suggests continued investor confidence in the life sciences sector, despite broader market uncertainties. The firm’s ability to secure substantial capital underscores the enduring appeal of biotech investments, particularly in companies developing innovative healthcare solutions and
breakthrough therapies.
For emerging biotech companies, this new funding represents a significant opportunity to access capital at a time when early-stage financing has become increasingly difficult to obtain. Sofinnova’s investment strategy, which spans multiple therapeutic areas and development stages, positions the firm to play a crucial role in advancing the next generation of healthcare innovations and
biotechnology breakthroughs.