Why This $90 Million Fund Is Betting on MedTech Startups From Scratch

Jan de Vries · 2026-09-28

Sofinnova Partners, a Paris-based life sciences investor, just closed its latest fund. The Sofinnova MD Start IV fund hit $90 million, and it was oversubscribed. That means more investors wanted in than they had room for. That's a pretty strong vote of confidence, don't you think? This isn't some new, flashy idea. They're building on a strategy that started back in 2008. In that time, they've created around a dozen companies from the ground up. It's a hands-on approach that seems to be working. ### What Makes This Fund Different? Antoine Papiernik, the Chairman and Managing Partner, put it well. He said, "Sofinnova MD Start is one of the few strategies in Europe focused on creating medtech companies from the ground up. What makes the model distinctive is the active role our team plays in building and supporting every company from day one." Think about that for a second. They're not just writing checks to existing startups. They're rolling up their sleeves and helping engineers, clinicians, and scientists build companies from an idea in a lab. This new fund lets them scale that unique, active approach. ### The Big Picture: Sofinnova's Platform Founded in 1972, Sofinnova Partners is a major European venture capital firm focused on healthcare and sustainability. They have offices in Paris, London, and Milan. They don't just have one fund; they run a multi-fund platform with seven distinct investment strategies, each with its own specialist team. Here's a quick look at their fund lineup: - **Capital**: Their flagship early-stage biopharma and MedTech fund. - **MD Start**: The one we're talking about – the MedTech company creator. - **Crossover**: For growth-stage BioTech and MedTech. - **Industrial Biotech**: For sustainable startups. - **Telethon**: Focused on early-stage Italian science. - **Digital Medicine**: For techbio and HealthTech. - **Biovelocita**: A BioTech accelerator built with research organizations. The firm has backed over 500 companies and manages more than $4.3 billion in assets. They invest from the Seed stage all the way to later stages, calling themselves "hands-on company builders" across the entire life sciences value chain. ### The Evolution of MD Start MD Start's whole purpose is building MedTech companies from scratch. The strategy kicked off with MD Start I back in 2008, which closed at $8.9 million. MD Start II followed in 2015 with $11.2 million. Then Sofinnova MD Start III reached $68.5 million in 2019. This new $90 million fund is about 30% larger than its predecessor. That's significant growth, showing real momentum for their builder model. ### A Track Record That Speaks Volumes So, does this hands-on approach actually work? The results from Fund III are compelling. They invested in six companies. Those six companies then went on to raise over $152 million in follow-on financing. Some standout successes include: - **LimFlow**: Acquired by Inari Medical for up to $426 million. - **preCARDIA**: Acquired by Abiomed. - **CorWave**: Has raised more than $109 million. - **BrightHeart**: Holds FDA and CE Mark clearance and recently closed a $12 million Series A. - **Moon Surgical**: Its Maestro system has FDA and CE Mark clearance and has been used to treat more than 3,700 patients. Anne Osdoit, a Partner at Sofinnova, expressed gratitude for their investors' support. "Their commitment reflects confidence in our active, hands-on approach to company building," she said. "With Sofinnova MD Start IV, we look forward to continuing to work closely with engineers, clinicians, and scientists to advance their transformative medical technologies from the lab to the clinic." ### What's Next for Fund IV? The close of this MD Start fund comes right after their flagship Sofinnova Capital XI fund closed at $707 million. That one also exceeded its target and even got a $32.6 million commitment from the British Business Bank. Now, with MD Start IV finally closed, Sofinnova Partners has a clear goal. Over the next five years, they aim to create six to eight brand new MedTech companies, focusing on both Europe and the US. They're promising founders not just capital, but that signature hands-on support. They'll guide them from the very first spark of an idea through all the critical clinical and operational milestones. It's a big bet on building the future of medical technology, one startup at a time. And with nearly $90 million to deploy, they're clearly ready to get to work.