Fountain Healthcare Partners has raised €118 million ($131 million) for its third life sciences fund. The transatlantic venture capital shop, which backed Inflazome and KaNDy Therapeutics with its second fund, will pump most of the money into European biopharma and medtech companies.
Armed with the cash, Fountain Healthcare plans to make 10 to 12 investments to build a portfolio skewed toward private, European biotechs, specialty pharma companies and medical device players.
Fountain Healthcare is yet to disclose any investments made using the third fund, but the identities of the companies backed by its first two investment vehicles gives a flavor of its focus. Over the past two years, the VC shop has helped biotechs including Chrono Therapeutics, Inflazome, KaNDy and Nerre Therapeutics secure series A and B rounds worth around $10 million to $50 million.
The first fund raised by Fountain Healthcare chalked up some successes. Fountain Healthcare took a 10% stake in Alkermes-spinout Civitas Therapeutics on route to its $525 million takeover by Acorda Therapeutics. It also provided funding for Irish device startup Neuravi ahead of its takeover by Johnson & Johnson.
Fountain Healthcare’s successes have enabled it to progressively grow the size of its funds. The €118 million raised at the first close of the third fund is 39% more than Fountain Healthcare had secured at the first close of its second fund. And it amounts to 40% of all the capital the VC shop is managing.
To raise the money, Fountain Healthcare tapped backers including Allied Irish Bank, the Ireland Strategic Investment Fund and the European Investment Fund (EIF). The support of EIF, an EU agency and frequent backer of VC funds in the region, helped Fountain Healthcare ease past its original fundraising target of €100 million.
“The new €45 million European Investment Fund support for Fountain Healthcare represents our largest backing in more than a decade of successful cooperation with venture capital funds. It will further strengthen Ireland’s impressive venture capital ecosystem,” European Investment Bank Vice President Andrew McDowell said in a statement.