Sofinnova MD Start IV fund closes at €82
Sofinnova Partners closed its oversubscribed MD Start IV fund at €82 million, a 30% increase over its predecessor, to launch six to eight new medtech
Sofinnova Partners closed its oversubscribed MD Start IV fund at €82 million, exceeding its undisclosed initial target. The new fund is about 30% larger than the previous MD Start III fund.
Strategy to launch six to eight companies with increased capital per venture
MD Start IV plans to launch six to eight new companies in Europe and the United States over the next five years. Anne Osdoit stated: 'We have a strategy to invest in the same number of companies as with MD Start III. The number of lines remains the same, but we allocate more money to each.'
Expanded support model from inception to clinical and operational milestones
The fund will provide founders with both capital and hands-on support. This support will take founders from inception through key clinical and operational milestones. The team aims to support its companies longer after the startup phase.
Builds on proven track record of MD Start strategy
The Sofinnova MD Start strategy began in 2008 and has created around a dozen companies since then. The strategy focuses on building MedTech companies from scratch instead of backing existing ones. The previous fund, MD Start III, invested across six companies. Those six companies raised over €140 million in additional financing.
Backed by strong portfolio performance and diverse investor base
The portfolio performance facilitated the fundraising. Key successes include LimFlow, which was acquired by Inari Medical for up to €392 million ($415 million). Moon Surgical, associated with the MD Start strategy, has received FDA and CE Mark clearance for its Maestro robotic surgical system. The Maestro system has been used to treat more than 3,700 patients. BrightHeart, which applies AI to prenatal screening for cardiac malformations, also holds FDA and CE Mark clearance and recently closed a €11 million Series A.
The investor base includes major institutional investors, medtech industrialists, co-investors and potential acquirers of portfolio companies, healthcare institutions, preclinical laboratories, and entrepreneurs from the sector. Anne Osdoit said: 'For the vast majority of them, these are resources for us, in addition to the invested money.' The broader team includes Marion Gasperment, analyst Jérémie Wisniewski, and venture partners Gérard Hascoët and Josh Makower.
MD Start IV has begun deployment, with no official investment made at this stage.
