German VC Earlybird Health announced the final closing of its latest healthcare fund of €173 million. The independently managed fund is significantly larger than the previous Fund, demonstrating increased investor interest in healthcare.
Earlybird Health Fund will invest in European companies from the early development stage to advanced technologies nearing regulatory approval and commercialisation. The Fund aims to invest in companies across healthcare sectors including digital health, diagnostics, medical devices, R&D tools, and biopharma – delivering robust and positive patient outcomes, regardless of the technology applied. It also complies with the Article 8 Fund criteria, per the EU’s Sustainable Finance Disclosure Regulation (SFDR).
With a team of more than 10 professionals, Earlybird Health brings a wealth of investment expertise to identify investment opportunities and provide financial and strategic support to its portfolio companies.
Newly-appointed Partner Florent Gros commented: “Joining Earlybird Health felt like a natural evolution, given that we have a shared commitment to revolutionise patient care. Earlybird’s prior investment in my company Priothera, coupled with my previous role with the Novartis Venture Fund helps us leverage our experience in strengthening Earlybird’s impact, especially in biotech and biopharma.”
To augment investment team experience, Earlybird uses a proprietary in-house technology, Eagle Eye, for deal sourcing. Harnessing data aggregation and curation of multiple sources, this cutting-edge AI tool scouts new startups and gathers information for established entities. The versatile tool increases deal flow from stealth mode companies to crossover financing rounds, offering market intelligence through competitor analyses and trend reports.
“Eagle Eye will soon be the driver of a more effective, efficient, and inclusive deal sourcing and due diligence process for our investment teams. Earlybird Health is proud to set the standard for dynamic and informed deal flow in the European healthcare sector,” added Dr. Christoph Massner, Principal at Earlybird Health.
The new Earlybird Health Fund received support from major institutional investors across Europe. This backing ranges from health insurers and strategic investors to public and private organisations across the entire region.
Christine Hockley, Managing Director for Funds at British Patient Capital, said: “We are delighted to be investing in Earlybird Health to support them in building out their healthcare investment strategy, especially within the UK. The UK is a global centre for healthcare innovation, and this investment aligns with our strategy of increasing the sources of capital to innovative breakthrough companies within the sector.”
Notably, BARMER, a leading public health insurer in Germany, became the first of such insurers to invest in a VC fund via its commitment to Earlybird Health.
“We are proud to pave the way for health insurers to invest in venture capital through our ongoing support for Earlybird Health. This reflects our commitment to fostering innovation within the German and European healthcare ecosystem. We are confident these efforts will yield positive outcomes for patients worldwide,” highlighted Prof. Dr. Christoph Straub, CEO of BARMER.
