Life sciences VC Omega Funds closes $647m funding round
Life sciences venture capital (VC) company Omega Funds has closed its eighth fund, with capital commitments totalling $647m.
As with its previous funds, the US-based business said its oversubscribed funding, which had initially targeted a $600m close, will continue executing on its strategy to support management teams in the US and Europe that target severe, unmet medical needs through company creation, early venture rounds, and later-stage financing.
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Omega Funds managing director Francesco Draetta said: “We believe our broad investment strategy is well-positioned for navigating this period of macro and policy uncertainty.
“We look forward to contributing our capital, expertise, and network connectivity in partnering with entrepreneurs, founders, co-investors, and the broader community to transform the standards of care for severe diseases.”
According to Omega, it has raised $2.5bn since its first fund in 2004 to support the development of medical devices and therapeutics across indications including oncology, immunology, and rare diseases.
In total, 52 products have been brought to market by Omega’s former portfolio companies, with the VC’s previous investments resulting in 50 exits via M&A, and 47 public listings.
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By GlobalDataM&A exits include SoniVie, Scorpion Therapeutics, and Amunix Pharmaceuticals, which were acquired by Boston Scientific, Eli Lilly, and Sanofi, respectively. Companies that Omega has invested in have gone on to launch initial public offerings (IPO). These include Kestra Medical Technologies, Beta Bionics, and Imago Biosciences, all of which are listed on the Nasdaq exchange.
Omega Funds’ founder and managing director Otello Stampacchia commented: “By exceeding its target size, fund VIII is a recognition of our investment strategy and track record of consistent exits across market cycles.”
Life science companies are typically reliant on investment from VC or private equity (PE) businesses. While research by Bain & Company found that deal value in 2023 struggled to match the pace of previous years, more recent research by the consultant found that healthcare PE soared to an estimated $115bn in 2024, making it the second-highest deal value total on record.
Other significant entities backing life science companies include Symbiotic Capital. The credit company from biotech entrepreneur Arie Belldegrun, founder of Kite Pharma and co-founder of Bellco Capital, launched in August 2024 with $600m for life science-specific loans.
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