Omega Funds Raises $647M in Latest Biotech Investment Round

Omega Funds, a prominent life sciences investment firm, has successfully raised $647 million for its eighth fund, demonstrating continued investor confidence in the biotechnology sector despite broader market challenges. The new fund, which narrowly missed the $650 million benchmark set by its predecessor in 2021, aims to support innovative biotechnology companies addressing unmet medical needs in the United States and Europe.

Fund Details and Investment Strategy

The latest round, dubbed Fund VIII, exceeded Omega's initial $600 million target, attributed to strong support from both new and existing limited partners. This brings Omega's total capital raised since its inception in 2004 to an impressive $2.5 billion. The firm's investment strategy remains focused on creating and investing in life sciences companies that target severe, unmet medical needs across the U.S. and European markets.

Francesco Draetta, Managing Director at Omega Funds, stated, "As with prior funds, Fund VIII will support management teams in the U.S. and Europe through company creation, early venture rounds, and later-stage financings." He added, "We believe our broad investment strategy is well-positioned for navigating this period of macro and policy uncertainty."

Track Record and Recent Successes

Omega Funds boasts a strong track record in the biotech investment space, with 50 companies in its portfolio having been acquired and 47 going public. Recent notable exits include Scorpion Therapeutics, a PI3Kα-focused company acquired by Eli Lilly for a potential $2.5 billion in January, and EyeBio, purchased by Merck & Co. for $1.3 billion last year.

Biotech Funding Landscape

The successful raise by Omega Funds comes against a backdrop of declining venture capital funding in the biotech sector. According to an analysis by GlobalData, biopharma venture funding dropped 20% in the first quarter of 2025 compared to the same period in the previous year. However, this trend hasn't deterred all investors, as evidenced by California-based Vivo Capital securing $740 million in commitments in May for investments in preclinical- and clinical-stage companies.