The “nano-in-micro” technology is solid and promising: it is a biologic drug that via inhalation reaches heart cells in a targeted manner to restore calcium channel traffic and maintain their function. In October, the company closed a funding round of 83.5 million euros, led by Xgen Venture, Sofinnova Partners and Cdp Venture Capital, but what was decisive was the work done in the early stages, especially by the Sofinnova Telethon Fund: they gathered intellectual property, assembled the team, determined the regulatory path and consolidated the board of directors. Capital XI is here to take the company towards clinical proof of concept and prepare for GMP manufacturing. This is how sector-changing investments are built.
The Italian biotech ecosystem is growing, but remains fragile from a capital perspective. How do you rate it?
Italy is a victim of its own success: the quality of research generates many opportunities, but international capital and continued funding are needed. Milan, in particular, is becoming an increasingly credible center. Our headquarters in Italy allows us to be close to universities and research centers, increasing deal flow and strengthening relationships with institutional players such as CDP Venture Capital. When government and the private sector work together, as in NanoPhoria, leaps in scale become possible.
Early stage investments carry high risks: how do you manage them while maintaining promise and profitability?
We work with specialized institutional investors, who are familiar with the typical J-curve of venture capital. They know that returns will occur at the end of the fund’s life cycle. In addition, our proximity to pharmaceutical companies allows us to have potential buyers with whom we are already in dialogue. Our latest fund has shown significant improvements in its first three years – not unusual in biotech, but that’s what happens when you bring together scientific quality and a global industry network.
