Interview

Capital XI, Sofinnova's record fund focuses on Italy and Europe

"Channelling resources and choices": the recipe of Graziano Seghezzi managing partner of the company, which has been working for years alongside researchers and start-ups to turn frontier discoveries into scalable businesses

by Francesca Cerati

18 November 2025

4' min read

Translated by AI

Versione italiana

4' min read

Translated by AI

Versione italiana

In a complex year for biotech venture capital, Sofinnova Partners surprises the market by closing Capital XI at EUR 650 million to accelerate the next generation of biotech start-ups. The result confirms the centrality of Europe in the emergence of future scientific scale-ups, while at the same time competing with the firepower of the US and China. With Graziano Seghezzi, managing partner and key figure in the group's pan-European strategy, we delve into what this result means for the market, which technologies will drive the next wave of innovation, and why Italy - also thanks to the case of NanoPhoria, a CNR spin-off - is becoming an increasingly important piece in the investment pipeline.

Sofinnova announces the closure of Capital XI: why is this a turning point for the industry?

That is exactly why we are here: we have closed Sofinnova Capital XI, which at 650 million is the largest fund we have ever raised. This is an achievement within a platform that has raised a total of 1.5 billion over the past twelve months. This capital will be used to finance between 50 and 60 new start-ups in the life sciences, effectively doubling our capacity to support the biotech ecosystem.

What factors have convinced investors in a still complex biotech market?

Three elements. The first is performance: 80 per cent of investors from previous funds have returned, a sign that the financial results are solid. The second is the nature of the product: in Europe there is a lack of funds capable of accompanying entrepreneurs from the start, while the demand for early-stage capital is very strong. The third is our operating model: when we make an investment, we accompany and build teams, advisory boards, regulatory strategies and development plans together with the entrepreneur. This collaborative, science-driven approach is what investors recognise.

Which therapeutic or technological areas will receive more attention?

We move into fields where we see the most scientific and clinical potential: immunology, oncology, cardiometabolic diseases and the central nervous system. We also remain very focused on technology platforms, from cell therapies to new delivery solutions such as those of NanoPhoria, which embody a step change that is only possible when research and capital really dialogue.

How do you balance the business between Europe and the United States?

Most of our strategies follow a 70-30 pattern: 70% in Europe, 30% in the rest of the world. In Capital XI's top five investments, four are European and one American. We are pan-European by vocation, but we look carefully at high-growth countries, such as Italy, where we have already made investments. The goal is simple: to go where there is quality science and strong entrepreneurs.

The NanoPhoria case is indicative: it is the largest Series A round in the history of Italian biotech. What convinced you?

The 'nano-in-micro' technology is solid and promising: it is a biological drug that through inhalation reaches heart cells in a targeted manner to restore calcium channel traffic and safeguard their functionality. In October, the company closed an EUR 83.5 million round, led by Xgen Venture, Sofinnova Partners and Cdp Venture Capital, but the decisive point was the work done in the seed phase, especially by the Sofinnova Telethon Fund: they collected the intellectual property, structured the team, defined the regulatory path, and consolidated the board of directors. Capital XI came in to take the company to clinical proof of concept and prepare for Gmp production. This is how you build the investments that change an industry.

The Italian biotech ecosystem is growing, but remains fragile in terms of capital. How do you assess it?

Italy is a victim of its own success: the quality of research generates many opportunities, but international capital and continuity in funding are needed. Milan, in particular, is becoming an increasingly credible hub. Our Italian office allows us to be close to universities and research centres, increase deal flow and strengthen relations with institutional players such as CDP Venture Capital. When public and private work together, as in NanoPhoria, the leap of scale becomes possible.

Early-stage investments present high risks: how do you manage them while maintaining promise and returns?

We work with specialised institutional investors, who are used to the typical J curve of venture capital. They know that the returns come later in the life cycle of the fund. In addition, our proximity to pharmaceuticals allows us to have potential buyers already in dialogue with us. Our last funds have seen significant exits in the first three years: this is not the norm in biotech, but it is what happens when you put together scientific quality and a global industry network.

Europe is squeezed between two giants, the United States and China: what does it take to stay competitive?

There is no point in focusing on American weaknesses: their financial masses remain huge and the innovation system is going on regardless of the administration. We need to focus on our strengths and channel resources better. We need clear choices on where to invest, critical mass, coordination between countries, a deeper capital market. It is a question of survival: we are between two giants and we cannot afford to be slow.

If you had to sum up the goal of Capital XI in one sentence?

Bringing the next generation of scientific innovations to patients by building strong, international companies capable of competing in the world. This is what will make the difference for the future of European biotech.