Although the demand for a bio-based industry is continually growing, financial support for such endeavors is still incredibly difficult to come by. This is particularly challenging as biotechnological production processes are often times still more expensive than conventional processes.

€106 million dedicated to renewable chemistry

Sofinnova Partners, an European venture capitalist specializing in life science now set out to remedy this issue. Sofinnova have recently announced their first closing of Sofinnova Industrial Biotech I (Sofinnova IB I) at €106 million. For this substantial first closing, Sofinnova IB I attracted premier investors, including predominantly European institutions and major international industrial players, from energy, chemical and agricultural sectors. The new fund is dedicated to renewable chemistry. It follows a series of nine investments in the sector since 2009, and places Sofinnova Partners at the forefront of this promising market. Moreover, the venture capitalist also used the fund to invest in bio-based plastic bottles and DNA synthesis.

Minimizing financial challenges for start-ups

However, the fund is not just beneficial for the market as a whole, it is especially good news for the start-ups in the industry; because Sofinnova Partners aims to invest at every possible step of the biotechnological production process. This includes the transformation of renewable raw materials, like agricultural waste or CO2, as well as renewable end-products, such as bio-plastics and other bio-sourced materials.

A growing market requires growing investments

Sofinnova Partners want to step in and provide a “financial push.” The investment thesis is based on the growing market of sustainable industries. And with that growing market growing demands are following, for innovative and renewable products that are offering novel technologies in order to produce better performing or cheaper, sustainable alternatives. Therefore, Sofinnova Partners will also look at technologies coming from advances in synthetic biology and alike.

Sofinnova Partners is based in Paris and encompasses twelve professionals from all over Europe, the US, and China to focus on paradigm shifting technologies alongside visionary entrepreneurs. The venture capitalist combines more than 40 years experience in creating market leaders around the globe, and continues to invest in start-ups and corporate spin-offs. Today, Sofinnova Partners is managing over €1.6 billion. They will seek to invest in eight to ten companies over the next three to four years.

jmr