Sofinnova Closes $93M Medtech Fund, Its Largest Yet

Paris-based Sofinnova Partners has closed its fourth medtech acceleration fund, Sofinnova MD Start IV, at $93 million — a substantial step up from MD Start III, which closed at €63 million ($71 million).

The fund will launch between six and eight new medtech ventures over the next five years, backing entrepreneurs from inception through critical clinical and developmental milestones with both capital and operational support.

"Capital for early-stage company creation in medtech is scarce," Anne Osdoit, partner at Sofinnova, told BioXconomy. "Most investors wait until there is a team or a prototype before they invest. We start earlier, working with physicians, research labs, and tech transfer offices to turn clinical insights into companies, often before a company exists."

Osdoit argues the early start pays off downstream. "That early start reduces risk for later investors, which is why our companies attract follow-on funding so consistently," she said. "Medtech timelines are also long, so our fund size and reserves are built around them. Founders know they have capital through clinical or regulatory milestones, not just proof of concept, and can focus on building rather than constantly fundraising."

A clinical-first strategy since 2008

Sofinnova does not chase promising technologies in search of applications. The firm begins with unmet clinical needs and works backward to identify or develop technologies that address them. This clinical-first philosophy has anchored the MD Start strategy since its inception in 2008, when the first fund closed at just €8.2 million ($9.3 million).

The new fund will invest across Europe and the US, reflecting the increasingly transatlantic nature of medtech innovation. Portfolio companies will draw on Sofinnova's operational infrastructure, covering regulatory strategy, clinical trial design, manufacturing partnerships, and commercial planning — a support system designed to de-risk the path from device concept to market approval and adoption.

"MD Start doesn't fund companies in the traditional sense," Osdoit explained. "We co-found them, usually from a clinical insight brought to us by physicians, research labs, or tech transfer offices."

A three-part thesis

"Our thesis rests on three things: an unmet clinical need, clarity on reimbursement, and an achievable regulatory pathway, in markets worth at least several hundred million euros a year," Osdoit said.

The fund targets therapeutic devices used in procedures — surgery and cardiac catheterization — rather than diagnostics or monitoring. Cardiovascular accounts for roughly a third of deal flow. The firm is also active in high-volume surgery, women's health, which Osdoit describes as underserved, ENT, neurostimulation, and AI-enhanced devices, a growing share of what the firm sees.

"A clear US regulatory and reimbursement path is essential, though the US doesn't have to be the first market," Osdoit said. "What attracts us most is clinicians with real problems and genuine entrepreneurial intent."

The model already has a track record. Sofinnova's previous MD Start funds have created companies advancing technologies from cardiovascular intervention to surgical robotics.

Companies are created in Europe by default, mostly in France, because the team takes a leadership role from day one — often including the CEO role, typically until Series A. "Our deal flow is global. Several of our companies began as US technologies that we brought to France and built here, including PreCARDIA," Osdoit said. The firm can also invest elsewhere in Europe, with Ireland a priority given the depth of its medtech ecosystem.

The $93 million close extends a broader Sofinnova push into early-stage life sciences. The firm previously raised $750 million to support early-stage companies, alongside a $180 million biotech acceleration fund billed as Europe's largest. With MD Start IV now deployed toward co-founding companies at the earliest possible stage, Sofinnova is betting that de-risking medtech ventures before they exist will keep follow-on investors lining up.