Seventure Partners Closes €200M Fund II to Invest in Microbiome Startups

VCBeat (WeChat Official Account: vcbeat) has learned that Seventure Partners completed the first closing of its second microbiome fund on March 5. The fund targets €200 million (approximately $227 million), with more than half of the amount committed by Novartis-backed investors. To date, Seventure has invested in approximately 20 microbiome startups using the raised capital.

It is reported that Seventure Partners, headquartered in Paris, France, was founded in 1997 and is a venture capital firm primarily investing in information and communication technologies (ICT) and life sciences. Seventure has committed substantial capital to European seed-stage startups, the majority of which are dedicated to the research and development of microbiome-based therapeutics and diagnostics. Meanwhile, Seventure also allocates a portion of its funds to health and nutrition startups outside Europe. Biotechnology will be a key focus area for this investment, with two-thirds of Seventure’s capital directed toward startups engaged in pharmaceutical and diagnostic development.

Seventure CEO Isabelle de Cremoux said, “This fundraising round was much easier. This year, many investors proactively reached out to us, having already decided to invest in the microbiome. Such a scenario never occurred four years ago.”

Seventure launched its first Health for Life Capital microbiome fund at the end of 2013 and secured Novartis-backed support two years later. During this period, the microbiome evolved from a niche field into one of the hottest sectors in biotechnology, partly thanks to Seres Therapeutics’ $134 million initial public offering. Buoyed by strong investor interest in the microbiome, Seventure easily surpassed its €120 million fundraising target for its first fund, ultimately reaching €160 million.

Seres Therapeutics is a clinical-stage biopharmaceutical company based in Cambridge, Massachusetts. The company has established a proprietary microbiome therapeutics platform aimed at developing novel therapies that restore healthy microbiomes. Research has shown that the trillions of bacteria residing in the human body play important and beneficial roles in a wide range of biological processes, including resistance to pathogens and modulation of immune function. Scientists studying the human microbiome have found that there is no universally “healthy” or “diseased” microbiome profile. By comparing data from patients with those from healthy individuals, the company demonstrates the functional role of specific microbiomes in states of dysbiosis.

Pathogens, antibiotic use, inflammation, and numerous other factors can lead to dysbiosis in the host, and a disrupted microbial ecosystem can contribute to disease development. Furthermore, the diverse microorganisms present in the gut play a crucial role in maintaining the healthy function of the human gastrointestinal ecosystem. Scientists have identified functional differences between “healthy” and “diseased” microbiomes and have rationally designed Ecobiotic drugs. These therapeutics are ecological compositions consisting of beneficial microbes, aimed at targeting functional deficits and restoring key features of a healthy microbiome.

Ecobiotic drugs can selectively help humans restore the ecological functions of healthy microbiota, disrupt “diseased” microbial ecological networks, and promote the establishment of “healthy” ones. Through rational drug design, scientists are actively conducting multi-stage preclinical and clinical trials of Ecobiotic drugs to optimize their safety and efficacy prior to FDA (U.S. Food and Drug Administration) approval.

Novartis-backed, founded in Basel, Switzerland in 1996, is a venture capital firm focused on investing in novel therapies and platforms. The company seeks to address unmet medical needs and leverage innovative patented science, preferring to invest in start-ups and support their growth. Novartis-backed anticipates total investments ranging from $3 billion to $5 billion per company over their entire lifecycle, although initial investments may start as low as $100,000.