Sofinnova secures $93m to build tomorrow’s medtech pioneers

Anne Osdoit, partner at Sofinnova. Image C/O Optimum Strategic Communications

The Paris-based life sciences VC company’s new fund Sofinnova MD Start IV represents a substantial increase from its predecessor,Sofinnova MD Start III, which closed at €63 million ($71 million). This growth trajectory underscores the expanding appetite for early-stage medtech innovation.

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

“Capital for early-stage company creation in medtech is scarce,” Anne Osdoit, partner at Sofinnova, toldBioXconomy. 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.”

“That early start reduces risk for later investors, which is why our companies attract follow-on funding so consistently. 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.”

Hands-on approach

Rather than simply identifying promising technologies seeking applications, the firm said it begins with unmet clinical needs and works backward to identify or develop technologies that address those gaps. This clinical-first philosophy has guided the MD Start strategy since its inception in 2008, when the firstfund closedat just €8.2 million ($9.3 million).

The fund will support ventures across both Europe and the US to reflect the increasingly transatlantic nature of medtech innovation. Portfolio companies will benefit from financial backing and Sofinnova’s operational infrastructure, which includes guidance on regulatory strategy, clinical trial design, manufacturing partnerships, and commercial planning. This comprehensive support system aims to de-risk the notoriously challenging path from medical device concept to market approval and adoption.

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

“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.

“We focus on therapeutic devices used in procedures, such as surgery and cardiac catheterization, rather than diagnostics or monitoring. Cardiovascular is our largest area, at roughly a third of our deal flow. We’re also active in high-volume surgery, women’s health, which remains underserved, ENT, neurostimulation, and AI-enhanced devices, a growing share of what we see. A clear US regulatory and reimbursement path is essential, though the US doesn’t have to be the first market. What attracts us most is clinicians with real problems and genuine entrepreneurial intent.”

Sofinnova’s MD Start portfolio has already demonstrated the viability of this model. The VC’s previous funds have created companies that have advanced technologies in areas ranging from cardiovascular intervention to surgical robotics.

“MD Start doesn’t fund companies in the traditional sense,” she explained. “We co-found them, usually from a clinical insight brought to us by physicians, research labs, or tech transfer offices. Companies are created in Europe by default, mostly in France, because our team takes a leadership role in each one 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. We can also invest elsewhere in Europe, and Ireland is a priority given the depth of its medtech ecosystem. Beyond that, opportunities need to fit our thesis: unmet clinical need, reimbursement clarity, and an achievable regulatory pathway,” Osdoit concluded.

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