Biovance Capital Fund I is one of the largest Iberian funds dedicated to early-stage biotech, and the first healthcare-specialized fund in Portugal, marking the first-ever investment by the European Investment Fund (EIF) in a Portuguese health fund.
Strong first closing confirms the fund’s strategy to invest in the booming early-stage drug development sector across Europe, with a special focus on Southern Europe.
Lisbon, Portugal – 09 July 2024 – Biovance Capital Partners, Portugal’s leading life sciences venture capital (VC) firm, announced today the first closing of its new biotech fund, Biovance Capital Fund I, at € 51 million. Being one of the few Iberian funds exclusively focused on early-stage biotech, Biovance Capital will invest in disruptive drug development companies across Europe. The fund has a special focus on Portugal and Southern Europe, where the exceptional quality of biomedical research, following large public investments, has generated a wealth of technologies ready to be spun-out into new ventures. The investment team will target seed and Series A rounds, with ticket sizes ranging from € 1.5 to 6 million. The fund will provide crucial capital and support for the development of novel transformational therapies addressing unmet medical needs across all disease areas.
Key investors in the fund include the EIF, the national promotional bank Banco Português de Fomento (BPF), and the European Commission, through the Portugal Tech and InvestEU programmes. Additional investors include Caixa Capital (Caixa Geral de Depósitos Group), Ageas Pensions, EDP Pension Fund, and private investors from the USA and Europe. Given the strong interest from additional investors seeking to capitalize on this largely untapped market opportunity, the team expects to expand the fund until it reaches its final close over the coming months.
The fund’s investment team is made up of two biomedical scientists and one medical doctor educated at world-renowned institutions such as Harvard Medical School, MIT, and Imperial College. They bring exceptional track records in both the pharmaceutical and VC industries, including a recent successful exit in the cancer space with potential returns exceeding € 1 billion. Ricardo Perdigão Henriques, PhD, Managing Partner, stated “As the first-ever biotech dedicated fund, Biovance Capital Fund I marks a significant milestone in the development of Portugal's biomedical ecosystem. We are thrilled to launch this fund and support innovative biotech companies across Europe. We are deeply grateful to our investors for their trust and ongoing support”. João Incio, MD/PhD, General Partner, said: “At Biovance, we believe the future of medicine lies in the hands of visionary scientists and groundbreaking innovations. Our mission is to empower pioneers with the resources to transform lives and redefine the boundaries of what’s possible”. André Albergaria, PhD, Principal, remarked: “With over twenty years fostering collaborations between industry and academia in Portugal's largest health research institute, I am thrilled to contribute to propel exceptional biomedical research from Europe onto the global stage”.
Marjut Falkstedt, EIF’s Chief Executive, said: “Life sciences and health innovation are an important area of investment focus for the EU, with breakthrough technologies offering the potential to have a positive impact on us all. The InvestEU programme provides funding for this important sector and we’re happy to partner with Biovance Capital to help tackle the financing gap for biotech companies in Southern Europe”.
Ana Carvalho, BPF’s President of the Executive Committee, highlights: "We are very pleased to participate in Biovance Capital Fund I, a fund that represents another important step in supporting innovation in Portugal, by providing essential capital to biotechnology companies that are developing disruptive medicines and therapies in key therapeutic areas. By boosting biomedical research, we are contributing to transforming scientific potential into solutions that respond to global health challenges, with a very significant impact on the well-being of society and the economy of our country”.
About Biovance Capital Partners
Biovance Capital Partners is Portugal’s leading life sciences venture capital firm. The company manages Biovance Capital Fund I FCRF, a new venture capital fund with a total of € 51 million from the European Investment Fund, the national promotional bank Banco Português de Fomento, the European Commission through the Portugal Tech and InvestEU programs, and private investors from the USA and Europe. The fund invests in early-stage drug development companies across Europe, with a special focus on Southern Europe.
About the Portugal Tech Program
The result of a partnership between the European Investment Fund (EIF) and Banco Português de Fomento (BPF), Portugal Tech is a €100 million joint investment program focused on investment in Portuguese technology transfer projects, start-ups and SMEs. Aiming to attract private and institutional capital for investment in technology-based companies in Portugal, the program's global allocation was fully allocated to six Portuguese funds, with a global leveraged value of more than €400 million. To date, the funds selected by Portugal Tech have invested more than €100 million in 55 startups. More information at: https://www.bpfomento.pt/pt/catalogo/portugal-tech/
About InvestEU
The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilize private investments for the EU’s policy priorities, such as the European Green Deal and the digital transition. The InvestEU programme brings together under one roof the multitude of EU financial instruments currently available to support investment in the EU, making funding for investment projects in Europe simpler, more efficient and more flexible. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilize at least €372 billion in additional investment.
About Banco Português de Fomento
Banco Português de Fomento's mission is to support the economic and social development of Portugal, through the creation and provision of innovative, competitive solutions suited to the needs and challenges of the business ecosystem, enhancing entrepreneurial capacity, investment and job creation, and promoting the sustainability and economic, social and territorial cohesion of the country. More information at: https://www.bpfomento.pt
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