Seventure scores millions in funding for microbiome start-up innovation

03 Aug 2020 --- European venture company Seventure Partners has revealed that the French government has approved the eligibility of its Health for Life Capital II (HFL 2) fund for microbiome innovation funding. The approval came from the technical committee of the initiative, which was set up to support the financing of technology companies. The move means that HFL 2 will be the first and only microbiome-focused venture part of the program. As part of the initiative, French institutional investors have committed to devote over €5 billion (US$5.8 billion) to the financing of innovative companies by December 31, 2022.

Continuing Seventure’s “beyond the pill” investment strategy, HFL 2 primarily invests in areas related to the microbiota revolution, including platforms, drugs, nutritional solutions, diagnostics and biomarkers. In addition, the fund also makes one-off investments in digital therapeutics, connected and digital health solutions, personalized nutrition, personalized medicine and foodtech.

HFL 2 comes after Seventure Partners completed the first closing of its second dedicated fund focused on the microbiome and health, nutrition and digital/connected health sectors, last year. The Health for Life Capital (HFL), was launched in 2014. 

“Both HFL funds work with investors in all geographies, including family offices, prestigious industrial investors, such as Danone, Novartis, Lesaffre, Bel, as well as financial institutions, such as Bpifrance,” says Isabelle de Crémoux, CEO and Managing Partner at Seventure. 

The gut microbiome is considered the next frontier in health and well-being and research is striving to uncover its potential benefits for overall health and wellness.“Thanks to this strategy, we have seen over 1,500 opportunities each year, ensuring a steady deal flow. We are content that the HFL 2 fund has already made five investments, including Axial, Galecto, Citryll and BCD.”

NutritionInsight has reached out to Seventure for further details on the investment and other companies of interest, active in microbiome innovation. 

Investing in innovation
The gut microbiome is considered the next frontier in health and well-being and research is striving to uncover its potential benefits for overall health and wellness. Innova Market Insights data show an 11 percent rise in launches with a gut-health related, digestive health claim (CAGR 2014 to 2018). Meanwhile, 64 percent of consumers said they consume more fiber to promote a healthy gut, according to a 2018 Innova Market Insights consumer survey. 

HFL 2 is Europe’s leading investment fund specialising in the field of the microbiome, according to Seventure. It brings together a team of 12 life science investors and eight operating experts in five European locations.

The HFL funds invest in all stages (seed, venture, and significantly in growth capital) to date, with around twenty innovative portfolio companies of an average ticket size of €15 million (US$17 million), in one to three successive financing rounds. The funds target start-ups and more established innovative small and medium enterprises (SMEs) with a turnover of around €50 million (US$58 million) from all over the world, with particular focus on Europe, North America, Israel and Asia.

The venture company announced the first closing of HFL 2 at €100 million (US$117 million) last year, while the final target of €200 million (US$234 million) has already been exceeded. It is expected to close in November 2020 but is still open to professional investors until that date. 

The HFL funds also allow co-investment with international financial and corporate players such as Novartis, Takeda, JNJ, Lundbeck, BMS, Nestlé, Kellogg’s, Tyson, Bunge and more with interest in the link between the microbiome, the food and health.

“The gut is home to a large number of bacteria, with 150 times more genes found here than the whole human genome. Everyone has a unique microbiome,” de Crémoux notes.

“Recent studies have shown the link between the alteration of the intestinal microbiome and metabolic pathologies, such as inflammatory bowel diseases (IBD), diabetes, obesity, Alzheimer's disease, Parkinson’s disease, autism, depression, many cancers, cardiovascular, immune or autoimmune diseases (multiple sclerosis, asthma and food allergies), as well as other common and chronic pathologies. This is a field as fascinating as it is promising, constituting the medical revolution of the 21st century,” she adds.

Other notable investments
Seventure partners is a prolific investment company, supporting multiple innovative players. Last year, microbiome human discovery platform, DayTwo, raised US$31 million in series B financing. The financing brings DayTwo’s total funding to US$48 million and investors include Seventure. 

In May this year, microbiome startup Vedanta Biosciences – developers of a new category of therapies for immune-mediated diseases using live human microbiome-derived bacteria – raised an additional US$18.5 million in its third round of financing, bringing the total to US$45.5 million. The funding included support from Seventure’s HFL fund.

Seventure also launched Sport & Performance Capital last year, a fund dedicated to supporting innovation in the sport and wellness industries. With a final target of €80 million (US$93 million), the venture fund invests in start-up companies and growing SMEs. The company has now settled the first close of the new fund, meaning investment can begin. Seventure Partners aims to invest in about 15 companies by the start of the Paris Olympic Games in July 2024 and has a ten-year investment horizon to support its portfolio companies through to 2029.

Previously, the french venture company also launched a venture capital fund targeted at supporting companies in the field of animal health, feed and nutrition, called AVF. The first close of AVF, at €24 million (US$28 million), is corner stoned by Adisseo, an industry heavyweight in the animal feed sector. AVF’s investment strategy focuses on two segments at the forefront of the modern agricultural and livestock revolution: animal health, feed and nutrition and digital technologies serving the livestock industry.

By Kristiana Lalou