Gimv launches life sciences investment platform

The new strategy will be supported by a dedicated team and allow for a more VC-style deployment and access to new capital, distinct from its buyout pool. The move comes as closed-ended funds are increasing investment in the sector.

"Over the last few years we've wanted to do bigger tickets as venture capital rounds are increasing," said managing partner Bram Vanparys, who will be leading the new platform. "We've always had the mindset to be lead or co-lead and as rounds get larger the tickets get bigger."

Gimv will now look to deploy tickets of EUR 10m-EUR 15m in Series A or B companies, reserving a similar amount for follow-ons. Earlier, it could invest a maximum of EUR 10m per ticket.

The investor is also spinning out its current 12 portfolio companies into the new platform and will seek to grow it to a total of 20 in the coming two to three years.

Like all of its current investments, it will deploy a few hundred million euros from its balance sheet instead of raising new structured funds. It will also not be taking on any external equity investors into the firm, bucking the trend recently followed by specialist life science investors Sofinnova Partners, Abingworth, and LSP, who have all seen investment from large-cap private equity firms in the past half-year.

The increased attention to life sciences from VC and PE funds comes as companies are finding it more difficult to raise cash in the public markets. "Now is the right time for us to more ambitiously invest," said Vanparys.

"Valuation expectations haven't worked on exciting opportunities in the past but now the parameters should move where there's more flexibility. We don't see any issue deploying cash, moving forward."

As macro effects trickle down to private markets, some investors may take more time to raise funds, which creates opportunities for Gimv as an evergreen investor, he added.

Specialist VCs including Forbion and Cathay have recently raised funds to plug the capital markets gap, with healthcare specialist funds already on track for a record-breaking year.

Investments
Gimv is mostly interested in drug development companies at the early pre-clinical stage, or with significant clinical data. It can do crossover investments as well as PIPE but sees these as more opportunistic, he added.

Around 90% of its investments are in therapeutic areas like small molecules, antibodies, gene therapy, and cell therapy with the balance in medtech, digital health and agrotech, depending on where the team has expertise.

The firm's investment structure means it is not bound to holding periods, but it does tend to follow the typical 4-7 year holding period, especially where it syndicates on the equity.
Gimv's current life sciences team has seven people, all with a science background, and will expand as the portfolio grows.

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