Seventure preps third generation of microbiome fund

Health for Life III is being prepared for 2023, Cremoux said, although is still in its premature stages. It will hold the same strategy as its predecessor, which closed on EUR 250m in early 2019 but probably be slightly larger.

The strategy deploys up to three-quarters of its capital in technologies that seek to understand and utilise the microbiome, the community of microorganisms present in a particular environment, and how it interacts with the body via the immune system. The remainder of the fund is deployed in health and food tech.

The sponsor can look at a wide scope of microbiome applications for its investments, including drugs, vaccines, diagnostics, and biomarkers, through to nutriceuticals, digital nutrition advice, and food technologies, said Cremoux.

Its sweet spot for investment is Series A, B, or C but can and has invested all the way from inception to pre-IPO, typically deploying EUR 500k-EUR 10m per round, or up to EUR 20m per company.

PIPE transactions are now also becoming more attractive due to the wider impact of stock devaluations, she said.

Geography-wise, the fund is focused on Europe but also invests in Israel and North America, and will look opportunistically at Japan and South Korea, she added.

Limited partners re-upped at 90% under Fund II, she said, adding that many like the specialisation because although it is an emerging field it holds similar potential to the early days of the global biotech industry.

The sponsor's second fund is still in deployment, having made around 16 investments out of a 20-23 target and some term sheets already signed, she said.

Recent tickets include EUR 10m into Denmark-based Clinical Microbiomics, which hosts a data warehouse of samples for analysis, and Germany-based Tubulis, to advance its pipeline of uniquely assembled antibody-drug conjugates (ADCs).

Microbiome
Cremoux said that the microbiome scope is not niche because many drugs for both prevention and cures are metabolised depending on the condition of the microbiome. Autoimmunity, cancer, gut health, brain health, neurology and ageing are all linked to the microbiome, she added.

Oncology is still a major application, she said, because the microbiome severely impacts the efficacy of over USD 17bn worth of therapies given to cancer patients each year. One of Seventure's portfolio companies Enterome, which it invested in at inception, recently completed patient enrollment for its Phase 2 clinical trial (ROSALIE) to evaluate its lead immunotherapy, EO2401, in recurrent glioblastoma.

Cosmetic groups are also starting to pay heady attention to the sector, she added, with many of the large players acquiring microbiome companies or setting up licencing agreements to explore new skincare ingredients, Cremoux said, adding that it has become a viable exit route for many companies in the space.

Last year, German brand Beiersdorf acquired S-Biomedic having invested in its early fundraising, while Shiseido bought Gallinée, with both vendors citing the importance of the skin microbiome.

Cremoux said that many cosmetic companies are already knocking on Seventure's door to put in some capital to Health For Life III.

Other applications can include autism, Parkinson's disease, food-eating disorders, Crohn's disease and mood disorders, she added.

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