Sofinnova Partners Closes New Fund at €650 Million to Fuel Life Sciences Growth

PARIS, France – November 16, 2025 — Sofinnova Partners, a leading European venture capital firm, announced Monday that it has successfully raised 650 million euros ($750 million) for a new fund aimed at supporting up-and-coming life sciences companies. The successful close arrives amid a broader influx of capital into the biotech venture sector.

Fund Strategy and Market Rebound

The majority of the new capital will be directed toward biotechnology startups developing novel drugs, with approximately 20% to 30% allocated to medical device makers, according to Maina Bhaman, a partner at the firm. Sofinnova has already committed funds to five companies, including radiopharmaceuticals startup Actithera and inflammatory disease drugmaker Elevara Medicines.

Sofinnova’s raise follows a significant rebound in new life sciences fund formation in the third quarter, with $6.1 billion raised between July and September, surpassing the total of $4.5 billion raised over the previous six months, according to investment bank William Blair. This trend is mirrored across the sector, with firms like Deerfield Management, Omega Funds, Atlas Venture, and Europe’s Medicxi (which recently raised 500 million euros) closing new investment vehicles.

The new fund is part of more than 1.2 billion euros in fundraising that Sofinnova, one of Europe’s oldest and largest venture firms, announced earlier this year. The firm focuses on forming and being the first investor in young life sciences companies, while also backing spinouts from larger pharmaceutical firms.

Investor Caution Lingers Over Novelty and Regulation

Despite the capital influx, the market remains cautious. Prior to the recent upturn, young companies struggled to secure funding due to a lower tolerance for risk.

“I think the market is a little bit wary of novelty at the moment,” Bhaman commented, noting that “first-in-class opportunities” face difficulty attracting attention.

This hesitance is partly attributed to recent regulatory and political upheaval, including threats of tariffs on pharmaceuticals, leadership turnover at the FDA, and inconsistencies in regulating certain treatments. This scrutiny is particularly sharp in advanced fields.

“If they’re doing a later-stage investment round, there is going to be pause,” Bhaman said. “Especially in some of the rare diseases, some of the gene therapy approaches, where people have to consider whether when you file, the FDA is going to stick to what they had said, or whether something’s going to change.”