Novo Holdings Participates in Biogenerations Venture IV Fund to Expand Scope of Biotech Investment

By Thomas Price Wednesday, January 20, 2021

With thousands of startups worldwide in the biotech field looking for funding and publicity, it is extremely difficult for a venture capital firm to have a strong grasp on where to look for and how to break into new regions without prior knowledge. For the venture arm of Novo Holdings, Novo Ventures, that means looking for new ways the business can invest money into startups. This in turn has resulted in their participation in the Biogenerations Ventures oversubscribed fourth fund. So, what kind of money has Novo Ventures committed, where will this money be going, and what can be expected from the fund in the near future?

Novo Holdings and the Biogenerations Venture IV Fund

Novo Holdings has announced that the company will be participating in the fourth Biogenerations Venture fund, which has recently closed at €140 million ($170 million). This money will be going toward funding a variety of biotech startups in Europe, mostly with single assets or technology platforms to build off. Novo Ventures is an active investor in both the United States (US) and Europe, especially in life science startups; however, their participation in the Biogenerations Venture fund represents a desire to spread their business out farther.

The Biogenerations Venture Fund will also be investing in Europe, but rather than investing in the areas that Novo Holdings has traditionally put time and money into, the fund will be focused on the Benelux region. The Benelux region is Belgium, Luxembourg, and the Netherlands, where the Biogenerations Venture fund happens to be based. Another major reason that Novo Holdings has chosen to participate in the fund is due to the fund’s previously successful efforts.

In the prior three funds, Biogenerations Venture Fund has several different successes, including Acerta Pharma, Staten Biotechnology, NorthSea Therapeutics, Azafaros, Varmx, and Confo Therapeutics. The company will join Schroder Adveq, Industriens Pension, KfW Capital, European Investment Fund, Bristol Myers Squibb, and Eli Lilly and Company in the fourth fund.

When speaking on this participation, Senior Partner at Novo Ventures, Naveed Siddiqi said, “This investment enables us to better access the high-quality science being discovered and developed particularly in the Benelux region, and it is a continuation of our strategy to selectively enhance our reach in life science hotspots around the world through collaborative relationships. We have been impressed with BGV's strong track record in company creation and efforts to promote pioneering science and entrepreneurs. Our international investment team's long and diverse experience and deep capital pool enable us to support companies through to key value inflection points.”

Final Conclusions

The fourth iteration of the Biogenerations Venture Fund represents another significant investment in the future of the biotech industry and could certainly lead to many innovative treatments and drugs for diseases in the near future. For Novo Holdings, it represents a new venture into a previously untapped region of Europe. Given the significant money backing the fund and the success from prior investments, there is clear belief that this venture will also yield strong results from the startup companies that will soon be funded.

About the Author

Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

Related Articles