Omega Funds Closes $647M Fund, Exceeds Target, to Support Life Sciences Investments

Life sciences VC Omega Funds has closed its eighth fund with $647m in capital commitments, exceeding its target of $600m. The US-based business will continue to support management teams in the US and Europe targeting severe, unmet medical needs. Omega has raised $2.5bn since its first fund in 2004 and has brought 52 products to market, with 50 exits via M&A and 47 public listings.

Life sciences venture capital firm Omega Funds has successfully closed its eighth fund, securing $647 million in capital commitments. This amount exceeds the firm's initial target of $600 million, marking a significant milestone in its investment strategy. Omega Funds, which has been active since 2004, has now raised a total of $2.5 billion to support innovative life sciences companies in the United States and Europe [1].

The new fund, Omega's eighth since its inception, will continue to focus on supporting management teams that target severe, unmet medical needs. Omega Funds Managing Director Francesco Draetta emphasized the firm's commitment to navigating the current period of macro and policy uncertainty. "We believe our broad investment strategy is well-positioned for this period," Draetta stated. "We look forward to contributing our capital, expertise, and network connectivity in partnering with entrepreneurs, founders, co-investors, and the broader community to transform the standards of care for severe diseases" [1].

Omega Funds has a proven track record, having brought 52 products to market, with 50 exits via mergers and acquisitions and 47 public listings. Notable exits include Scorpion Therapeutics, which was acquired by Eli Lilly for potentially $2.5 billion, and EyeBio, which was bought by Merck & Co. for $1.3 billion [1].

The fund's success comes amidst a backdrop of falling venture capital (VC) funding in the biotech sector. According to GlobalData, biopharma venture funding dropped by 20% in the first quarter of 2025 compared to the same period the year before [1]. Despite this, Omega Funds' latest round demonstrates strong support from both new and existing limited partners.

In contrast, China's venture capital landscape is witnessing a resurgence, with several prominent VC firms tapping the market for at least $2 billion in new funds. This includes LightSpeed China Partners, Monolith Management, BA Capital, Ince Capital, and Qiming Venture Capital, which are all creating new dollar-denominated funds to attract overseas investors [2]. This trend reflects a renewed global interest in China's startup ecosystem, particularly in sectors like AI and toys.

The life sciences VC market remains robust, with healthcare private equity (PE) soaring to an estimated $115 billion in 2024, making it the second-highest deal value total on record [3]. Symbiotic Capital, a credit company from biotech entrepreneur Arie Belldegrun, also launched in August 2024 with $600 million for life science-specific loans, further underscoring the sector's attractiveness [3].

References:

[1] https://www.fiercebiotech.com/biotech/omega-raises-647m-8th-fund-aimed-innovative-biotechs
[2] https://www.bloomberg.com/news/articles/2025-07-18/china-vc-funds-tap-global-investors-for-2-billion-in-comeback
[3] https://www.medicaldevice-network.com/news/life-sciences-vc-omega-funds-closes-647m-funding-round/