Hot topic: Cash is starting to flow into the life science sector

You have probably already seen the news: not one but two major European life science funds have closed in the last week – collectively raising a massive €1.15 billion! 

Last Friday (November 14), leading European life sciences venture capital firm Medicxi announced it had closed its €500 million Medicxi V fund. 

And on Monday, (November 17), Paris-based Sofinnova Partners announced the closure of its Sofinnova Capital XI fund at €650 million. 

Medicxi V was “oversubscribed” while Sofinnova Capital XI “greatly exceeded its initial target”. 

After a number of years in which VCs have, let’s say, had their work cut out convincing LPs to part with their cash when passing the hat around, this is a very positive development. 

Let’s remember, like rain, these funds are needed to make the life science ecosystem flourish. If there is money pouring in at the top, it will eventually percolate through the system to help seeds germinate and nourish the parched roots of saplings. 

As Antoine Papiernik, Managing Partner and Chairman of Sofinnova Partners, put it, the fundraise “gives us the firepower to double down on early-stage opportunities”. 

Francesco De Rubertis, Co-founder and Partner at Medicxi, said: “The new €500 million fund will enable Medicxi to provide the critical capital, expertise and experience to deliver transformative therapies for patients.” 

Of course, one swallow does not make a summer. And two decent fundraises do not necessarily make a biotech spring. 

Nonetheless, they are surely a good sign – and they come amid other signals that things are moving in the right direction, with the mood music at the recent BIO-Europe conference in Vienna, and this week’s London Life Science Week / Jefferies, being upbeat too. 

Spring might not have sprung yet, but the sector certainly has a little more spring in its step.