The Finnish venture company Biofund management, which was acquired last winter by the financial concern Capinordic, is now gearing up to react to the growing need for capital in the Danish biotech industry, writes financial daily newspaper Børsen.
Danish pension funds need to realize a yield from their current investments before they put money into a new fund, so money for fresh investment is in short supply. The news from Biofund is thus highly welcome.
Morten Bro Nielsen, senior partner for Biofund in Denmark told Børsen: "We are in the process of raising money for a new fund. Our aim is to get a well-known European life science investor involved, and I believe that Denmark will be a very important centre for life sciences in the time ahead."
To lower the risk level for investors, Biofund indicates that it will concentrate on mature biotech companies that need at most two more rounds of finance before the company can be sold.
Concerning Capinordic's acquisition of Biofund, Nielsen sees it as a sign of impending consolidation in the venture capital industry, where larger funds will have a broader geographical focus.
"We think that Nordic and European venture capital is moving towards consolidation, and there probably isn't a future for small national funds. Things need to be stepped up a gear to a bigger format than we have seen in the past," says Nielsen.