Forbion raises €2 billion to fuel biotech innovation with new venture funds

Biotech is a booming business, Dutch venture capital fund Forbion raised €1.2 billion, Growth Opportunities Fund III and €890 million, Ventures Fund VII. This success is the follow-up after securing six exits of over a billion euros in the last 12 months and a raise of €1.35 billion in April last year.  The new funds are expected to fund around 15 companies each. Additional valuation for Forbion’s achievement by more institutional investors finding their way to biotech, with pension fund asset manager MN investing in the fund.

Most of the 5 billion euros entrusted to the management of Forbion is allocated to companies developing novel therapies in areas of high medical need. This year, however, Forbion launched its first BioEconomy Fund. The Fund focuses on the food, agriculture and material & environmental technology sectors,  expanding Forbion’s scope from biomedical applications to a broader range of biotech.    

Institutional investors 

A noteworthy detail of the raising of the new Growth Opportunities- and Ventures Fund is that there is also money allocated from institutional investors, such as pension funds. In hollandbio’s opinion, pension funds could play a major role in biotech funding and it is a great development that they are now positive on these new Forbion funds. As Brian Frieser, Principal Portfolio Manager PE & Infrastructure at MN said: “Our pension fund clients are dedicated to achieving the best possible risk-return for their participants. Investments in biotech not only promise strong returns but also make a positive societal impact. The capital commitments to Forbion’s new fund on behalf of our clients are expected to contribute significantly to this two-sided goal.” 

Closing the funding gap 

The new bigger funds enable Forbion to increase the impact by bringing more therapies and treatments to patients and supporting better health for our planet. Their portfolio companies will benefit as initial funds can be increased and there might be room for follow-up rounds. Hollandbio is enjoying the sun shining bright but if we also want unicorns, we will need rainbows too. Rainbows in the shape of starting companies that are looking for earlier-stage funding. As research from hollandbio shows, Seed- and Series A funding rounds are growing rapidly, but earlier-stage funding remains challenging. Let’s not lose sight of this critical link in the chain of investments. Hollandbio will continue working to create a suitable funding environment for every growth stage of biotech companies.  

Do you have a view or opinion on the funding landscape in the Netherlands? Feel free to reach out to hollandbio’s Max.