Innovation Fund commits €28m to US venture capitalist

Innovation Fund Ireland has committed €28m to a US healthcare venture capital fund Sofinnova Ventures.

This is the first investment by Innovation Fund Ireland that has drawn capital from Enterprise Ireland’s €125m commitment to the fund.

Enterprise Ireland has invested €19m into Sofinnova. That money will have to be invested in Ireland or Irish companies, said senior investment adviser with Enterprise Ireland Garrett Murray.

“Enterprise Ireland are delighted to welcome Sofinnova... The investment will help Enterprise Ireland with the availability of risk capital,” he said.

Jobs, Enterprise and Innovation Minister Richard Bruton announced the investment in Silicon Valley yesterday.

The money will be added to a €336m special investment vehicle focused solely on life sciences. Making the announcement, Mr Bruton said that investment in the venture capital industry was part of the Government’s growth strategy.

“Developing a dynamic venture capital industry in Ireland is a key part of this Government’s growth strategy. Venture capital funds provide crucial funding, as well as mentoring and advice, to early-stage high-potential companies in key high-growth sectors.

“That is why the Programme for Government outlines the Government’s determination to support the development of a more dynamic venture capital industry in Ireland by seeking to attract top tier venture capitalists to invest in Ireland, and why the Action Plan for Jobs commits to delivering a number of key measures to step up our performance in this area”.

Sofinnova general partner Mike Powell said they were pleased with the Irish investment into their fund. “We are pleased to welcome Enterprise Ireland and the National Pensions Reserve Board as Limited Partners to our next fund, and they nicely complement the global and strong investor base we have in Sofinnova Ventures VIII. Ireland has produced several outstanding life science companies, including the Sofinnova portfolio company, Amarin Corporation. We look forward to continuing to build industry leading companies for our investors,” he said.