France-based Sofinnova holds €106m close for biotech fund

Sofinnova (a separate entity to US-based Sofinnova Ventures) is aiming to raise in the region of €120-150m, according to managing partner Denis Lucquin. The VC is looking to close the fund by Q3 2017 and is conducting the fundraise without the help of a placement agent.

The fund will focus specifically on the renewable chemistry sector, complementing the VC's existing funds. The manager previously made a foray into the renewables sector in 2012 by raising €22m for its Sofinnova Green Seed Fund. Having made six investments via that vehicle, Sofinnova decided to raise a dedicated fund with a separate team in order to attract strategic LPs and offer differentiated products to institutional investors, according to Lucquin.

Sofinnova will look to recruit an extra one or two professionals for the renewable chemistry team over the coming months.

Sofinnova closed its eighth main fund on €300m in late 2015, exceeding the €250m target set for the life sciences vehicle. Fundraising for Sofinnova Capital VIII took nine months, aided by placement agent Triago. The vehicle marked a step up from predecessors Sofinnova Capital VI and VII, which closed on €260m and €240m in February 2010 and December 2012, respectively.

Investors
Sofinnova stated it attracted mainly European institutions and international industrial players from the energy, chemical and agricultural sectors at first close. These include several returning investors from the 2012 seed fund, and so far comprises the EIF, BPI France, the Novo Nordisk Foundation, Total, Michelin, Sofiproteol, the Avril Group and Unigrains. According to Lucquin, Sofinnova will pursue a similar mix of corporate and institutional investors towards the final close.

Investments
Sofinnova IB I will target startups and corporate spinouts involved in the transformation of renewable raw materials, like agricultural waste or C0², to renewable end products such as bio-plastics and other bio-sourced materials.

It will look to back 8-10 companies over the next three to four years, investing €13-17m on average per ticket. Around two thirds of the fund will be deployed in Europe and the remainder in North America, with a particular focus on Canada.

People
Sofinnova Partners – Denis Lucquin (managing partner); Joško Bobanović (partner); Michael Krel (principal).

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