Omega Funds Raises $647M in Latest Biotech Investment Round

Omega Funds, a prominent life sciences investment firm, has successfully closed its eighth fund, raising $647 million to support innovative biotechnology companies. The new fund, which narrowly missed the $650 million benchmark set by its predecessor in 2021, exceeded its initial $600 million target, demonstrating continued investor confidence in the biotech sector despite broader market challenges.

Fund Details and Investment Strategy

The latest round brings Omega Funds' total capital raised to $2.5 billion since its inception in 2004. The firm plans to maintain its focus on creating and investing in life sciences companies in the United States and Europe that address severe, unmet medical needs.

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."

Recent Success Stories and Industry Impact

Omega Funds has a track record of successful investments, with 50 portfolio companies having been acquired and 47 going public. Notable recent exits include:

• Scorpion Therapeutics, a PI3Kα-focused company, acquired by Eli Lilly for a potential $2.5 billion in January 2025.
• EyeBio, purchased by Merck & Co. for $1.3 billion in 2024.

These successes underscore the firm's ability to identify and nurture high-potential biotech ventures, contributing to advancements in drug development and patient care.

Biotech Funding Landscape

While Omega Funds' latest round represents a significant influx of capital into the biotech sector, it comes against a backdrop of overall declining venture capital funding in the industry. 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.

Despite this trend, other investment firms are also securing substantial commitments. California-based Vivo Capital, for instance, raised $740 million in May 2025, targeting preclinical- and clinical-stage companies.

The continued flow of capital from firms like Omega Funds and Vivo Capital suggests that investors remain optimistic about the long-term potential of innovative biotech companies, even as the broader funding environment faces challenges.