European venture capital powerhouse Sofinnova Partners has secured €1.2 billion (approximately $1.3 billion) in new funding to invest across the life sciences and healthcare sectors, the firm announced Tuesday. This significant capital raise positions Sofinnova to continue its role as one of the industry's most active biotech investors during a period of evolving market dynamics.
"With the new funds, we anticipate supporting 50 to 60 new companies, empowering a new wave of entrepreneurs tackling some of the world's most pressing health and sustainability challenges," stated Antoine Papiernik, Sofinnova's chairman, in the announcement.
Investment Track Record and Portfolio Strategy
Founded in 1972, Sofinnova has established itself as a major force in biotech venture capital. According to BioPharma Dive data, the firm has backed 21 biotech companies since 2022, spanning diverse therapeutic modalities and disease areas. This latest fundraise brings Sofinnova's total assets under management to more than €4 billion.
Notable investments in Sofinnova's portfolio include gene therapy developer Chroma Medicine, which recently merged with Nvelop Therapeutics to form nChroma Bio. The firm has also demonstrated successful exit strategies through portfolio companies CinCor Pharma and Amolyt Pharma, both acquired by pharmaceutical giant AstraZeneca in 2023 and 2024, respectively.
While specific allocation details weren't disclosed, Sofinnova's investment strategy encompasses multiple healthcare segments, including drug development startups, medical device companies, and digital therapeutics ventures. The firm indicated that further details on individual funds will be revealed "upon their final closings."
Biotech Venture Capital Landscape in Transition
Sofinnova's fundraise represents one of the first major capital events for a life sciences venture firm in 2025. It follows a 2024 where several prominent investors, including Arch Venture Partners, Forbion, and Flagship Pioneering, each announced funds exceeding $2 billion despite what industry observers characterized as challenging fundraising conditions.
The biotech venture capital ecosystem has undergone significant transformation since its peak in 2021, when 137 new funds collectively raised $30.8 billion during an unprecedented investment and IPO boom. By comparison, 2024 saw just 38 funds raised, though the total capital of $16 billion indicates larger fund sizes rather than proportional decline.
Shifting Investment Priorities
Current market conditions are reshaping investment strategies across the sector. According to PitchBook analyst Kazi Helal, capital is increasingly concentrated in fewer but larger deals, with investors prioritizing "companies that demonstrate validated clinical data and clear commercialization pathways."
This trend presents particular challenges for early-stage biotech ventures. "Conversely, seed and early-stage investments are likely to face significant challenges, as the scarcity of new fund closures among emerging managers and weak exit activity will constrain capital recycling," Helal noted.
For Sofinnova, the substantial new funding provides flexibility to navigate these market dynamics while continuing to identify and support promising innovations across the healthcare spectrum. The firm's decades of experience and established position in the European venture ecosystem may prove particularly valuable as the industry adapts to evolving funding patterns and investor expectations.
