Biotech Industry · eu
Forbion raises €2.3 billion, with two new funds supporting successive stages of drug development
From building new companies to supporting later-stage development, Forbion’s latest fundraising is expected to support about 30 biotech companies. Investment has already begun, but whether the scale of the fundraising translates into new therapies still depends on the progress of individual development programs.
Moving new drugs from the laboratory to patients requires scientific evidence and sufficient funding to sustain development. Dutch life sciences venture capital firm Forbion announced on October 6 that it had raised a combined €2.3 billion, approximately $2.6 billion, for two new funds. This marks the largest fundraising in the firm’s history and adds a source of capital for biotech companies at different stages of growth.
The capital will be deployed through Growth Opportunities Fund IV and Ventures Fund VIII. The former primarily invests in biopharmaceutical companies at later stages of development in Europe and North America; the latter focuses on therapeutic drug development, supporting both existing businesses and new companies built around promising assets and established teams. The two funds’ distinct roles allow the capital to address different needs in company creation and subsequent expansion.
Forbion said the two funds together have the capacity to finance about 30 portfolio companies, and the first investments have already been completed. BioPharma Dive noted that recent investments include Sling Therapeutics and Solstice Oncology. However, about 30 is the estimated number of companies the funds can support, rather than the number that have already received investment.
The fundraising exceeded its original target, bringing Forbion’s total assets under management to approximately €7.5 billion. Participants include MN, PGGM, KfW Capital, Kauffman Foundation and Eli Lilly. Contributions from institutional investors and pharmaceutical companies expand the resources the funds can deploy toward development; participation in the funds itself, however, does not mean that pharmaceutical companies have committed to acquiring or licensing individual drug candidates.
This fundraising round also continues Forbion’s investment pace in recent years. According to data compiled by BioPharma Dive, the firm has publicly announced at least 55 investments since the beginning of 2022. The report also places this fundraising against a backdrop of mounting competitive pressure on Europe’s biotech industry: industry leaders are calling for improvements to the policy environment to attract investment and accelerate drug development. One firm’s successful fundraising provides a new supply of capital, but is insufficient to establish that the overall market has recovered.
For companies developing new therapies, the significance of this capital ultimately lies in which programs it can help reach the next validation milestone. The current announcement does not provide a complete list of investments, nor does it specify the amounts each company may receive or their development timelines. Completing the fundraising increases the capacity to advance research; whether drug candidates can demonstrate safety and efficacy and gain approval remains a question for subsequent trials.