Sofinnova Partners Closes €650M Flagship Fund to Accelerate European Biotech and Medtech Innovation
Tuesday, November 18, 2025
European venture capital firm Sofinnova Partners has announced the successful closing of its latest flagship fund, Sofinnova Capital XI, raising €650 million (approximately $750 million) to fuel innovation in the life sciences sector. The fund, finalized on November 17, 2025, will primarily support pioneering biopharma and medtech startups addressing urgent unmet clinical needs. This marks a significant milestone for the European biotech ecosystem, reinforcing the region’s ability to attract substantial investment even amid a volatile global economic climate.
The capital raised will be deployed to identify and back early-stage companies with transformative potential, with a focus on both biotechnology and medical device development. According to Sofinnova Partners, the fund will help double down on early-stage opportunities and further solidify its collaborative, science-driven investment approach. The firm’s managing partner and chairman, Antoine Papiernik, emphasized that the successful fundraising demonstrates the strength of Sofinnova’s model and the continued confidence of investors in the European life sciences sector.
Investors in Sofinnova Capital XI include sovereign wealth funds, leading pharmaceutical companies, insurance firms, foundations, and family offices. The diversity of the investor base highlights the broad appeal and strategic importance of supporting innovation in biotech and medtech. Sofinnova has already begun deploying capital from the new fund, making initial investments in several portfolio companies. These include Actithera, a radiopharmaceuticals startup, and Elevara Medicines, a developer of inflammatory disease therapies.
The closing of Sofinnova Capital XI brings the firm’s total fundraising for the past year to an impressive €1.5 billion, underscoring its position as one of Europe’s most active and influential venture capital firms in the life sciences space. Sofinnova Partners, established over 55 years ago, now manages more than €4 billion in assets and has a long history of supporting the formation and growth of young life sciences companies. The firm is known for being the first investor in many startups and for backing spinouts from larger pharmaceutical organizations, particularly those centered around a single asset.
Recent investments by Sofinnova include Hemab Therapeutics, a developer of blood disease treatments; GlycoEra, a protein degrader startup; and T-Therapeutics, a specialist in bispecific antibodies. Earlier in 2025, Sofinnova also launched a new Europe-focused fund, Biovelocita II, supported by major pharmaceutical players such as Amgen, Bristol Myers Squibb, and Pfizer Ventures. These initiatives reflect the firm’s commitment to fostering innovation and accelerating the development of new therapies and technologies.
The biotech venture capital landscape in Europe has seen a resurgence in the third quarter of 2025, with $6.1 billion raised between July and September, compared to $4.5 billion over the previous six months. Sofinnova’s latest fund is part of this broader trend, which also includes other notable European VC firms such as Medicxi, which recently raised €500 million. Despite a challenging start to the year, the sector has rebounded, driven by increased investor confidence and a growing recognition of the importance of supporting early-stage innovation.
However, the market remains cautious, with investors showing a lower tolerance for risk and a preference for proven technologies over novel approaches. This hesitance is partly due to recent regulatory and political uncertainties, including threats of tariffs on pharmaceuticals, leadership changes at regulatory agencies, and inconsistencies in the approval process for rare disease treatments. As a result, companies pursuing first-in-class opportunities may face additional scrutiny and challenges in securing funding.
Nonetheless, Sofinnova Partners’ latest fund represents a strong vote of confidence in the European biotech and medtech sectors. By providing critical capital and strategic support, the firm is helping to drive the next wave of innovation and ensure that Europe remains at the forefront of life sciences research and development.
