Suanfarma Biotech initiates second venture capital fund, aims for €30 million
The company plans on investing in ten to fifteen science and knowledge projects in Spain, principally through seed capital.
BY BIOCAT
One year after closing their first fund, the venture capital firm Suanfarma Biotech SGECR has announced that it has put the wheels in motion for its second fund, Suan Biotech II. The new fund is slated to reach €30 million and will be used to invest in 10 to 15 new science and knowledge initiatives in Spain, principally through seed capital and development of new projects.
Each investment will range from €500,000 to €3 million and will provide four to five years of funding. The Suanfarma Biotech SGECR team has spent nearly a year working on this fund, during which they have studied nearly 100 proposals.
The portfolio of selected projects is highly diverse in terms of technology and sector:
- Two drug-discovery technology projects.
- Five drug-discovery programs, including vaccines and other treatments, encompassing five therapeutic areas: dermatology, hepatology, autoimmune disorders, cancer, and cardiovascular.
- One medical software project.
“These are scientifically intensive projects, considered highly viable by our scientific and financial evaluation committees, and that we believe, with our financial contribution, can be successful”, affirmed Gonzalo Marín, director and partner at Suanfarma Biotech.
Suanfarma’s first fund invested in eight biotech companies
The new fund will draw on a broad array of investor types: institutions; regional development agencies; autonomous communities; retirement and investment funds; savings banks and other financial entities; qualified personal investors; and family offices. Suan Biotech II has already secured various investors for this fund.
With its first fund Suanfarma Biotech raised nearly €9 million, which it invested in eight biotech companies that it selected from 300 candidate projects. To date, three of those companies have broken even, and the remaining five are doing well and meeting their objectives. “They have all spent less than had been projected in the original business plans and no additional round of financing, besides the initially planned ones, has been employed”, affirmed Gonzalo Marín.
Suanfarma Biotech does not only invest: it sometimes provides support to companies in critical areas such as marketing, global expansion and corporate management. “This has enabled us to acquire solid experience in fund management; developing that kind of track record is invaluable for gaining the confidence of investors,” explained Marín.