BioGeneration Ventures (BGV), a leading early-stage VC in European biopharma, announces the closing of BGV IV at €140 million ($170 million), including €30 million backing from the European Investment Fund (EIF). Demand to invest in this fourth fund was strong and allowed BGV to increase its final size to be better equipped to support healthcare innovation in challenging times. The EIF’s commitment was made possible with the backing of the Investment Plan for Europe as well as the Dutch Future Fund, a recently launched initiative between the EIF and Dutch national promotional institution Invest-NL.
By the final close, LPs included the global pharma companies Bristol Myers Squibb, Eli Lilly and Company, Novo Ventures, a world-leading life science investor and institutional investors, Schroder Adveq, Industriens Pension and KfW Capital. With a commitment of €30 million, the European Investment Fund is the largest backer. BGV is now one of the largest Biotech investors in Europe dedicated to early stage ventures and company creation. The VC has over € 250 million assets under management.
The investment focus of the fourth fund is to seek innovations that have a truly differentiated scientific basis, supported by convincing experimental data. These innovations must be compelling and stand out in the global scientific arena, with the potential to have a substantial healthcare impact.
Commissioner for the Economy, Paolo Gentiloni, said: “I warmly welcome the Investment Plan for Europe’s support for this EIF investment in BGV. It will support this specialised fund to finance early-stage European biotech companies operating at the forefront of healthcare innovation.”
Edward van Wezel, BGV’s Managing Partner said: “Progressing early stage projects from discovery to clinical proof-of-concept requires a breadth of experience that founding teams often do not have from the outset. This is where BGV’s team collective experience is a key differentiator, with their extensive network and experience spanning investment, life sciences, business development, and commercial operations. With this closing at €140 million, we are well positioned to support our portfolio companies with both increased financial capacity and our strong expanding international network.”
“There is still something of a financing gap for this kind of investment, which we feel is exactly the sort of venture that markets should get behind right now. Therefore, we think it is excellent news that, with support of the EIF and the Investment Plan for Europe, the fund reached a size matching its ambitions and challenges ahead.” said Alain Godard, Chief Executive of the EIF. “We are glad to get behind BGV and hope that this operation will have a further signaling function for the sector.”
The European Investment Fund (EIF) is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment.
BioGeneration Ventures (BGV) is a venture capital company, with a focus on early stage European biotech companies. The Company has a strong track record of significant financial returns through investing in innovations in healthcare and providing the expertise to build world-class teams. The Company manages over €250 million of funds investing in areas where true scientific innovations, the unmet medical need, and the potential to demonstrate a significant proof of concept all come together.
BGV strives to work with founding teams to mature science and build companies. The Company uses its experience to guide progress into clinical trials, ultimately leading to successful drug development and value realisation for its investors. BGV applies its expertise in a rigorous process to select the most compelling opportunities with the best prospects for exit.
BGV is based in Naarden, The Netherlands and closely collaborates with Forbion. For more information, please see the website: www.biogenerationventures.com
The European Fund for Strategic Investments (EFSI) is the main pillar of the Investment Plan for Europe. It provides first loss guarantees enabling the EIB Group to invest in riskier projects. The projects and agreements approved for financing under EFSI have so far mobilised €535.4 billion in investment, benefitting over 1.4 million SMEs.
Source: European backing for early stage life sciences innovation (europa.eu)
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