Germany-based Earlybird Health has successfully closed its second fund, raising an impressive €173 million (approximately $185 million). This marks a significant milestone, as the fund is more than twice the size of Earlybird’s first healthcare-focused fund, Health I, which reached €85 million at its final closing.
Key Takeaway
Earlybird Health’s successful closure of its second fund, with more than double the capital of its first fund, positions the firm to make larger investments in healthtech startups across Europe. The fund’s expanded focus on diverse healthcare sectors and strategic partnerships underscores its commitment to driving innovation and positive patient outcomes.
Expanding Investment Capabilities
With the substantial increase in funding, Earlybird Health is now poised to write larger checks, providing a significant boost to healthtech startups in Europe, including the U.K. This development comes at a crucial time for many startups in the region, particularly in the aftermath of the challenges faced by telehealth company Babylon.
Diverse Investment Focus
Earlybird Health’s investment focus extends beyond digital health solutions, encompassing medical devices, diagnostics, R&D tools, and biopharma. Notably, the fund’s first investment in the biopharma sector resulted in the successful IPO of eye care company Oculis on NASDAQ in March 2023.
Strategic Partnerships and Collaborations
The fund has also welcomed new partners, including British Patient Capital, a subsidiary of the state-owned British Business Bank, and BARMER, one of Germany’s largest public health insurance providers. These partnerships provide valuable insights and support for portfolio companies, fostering innovation and addressing key patient needs.
Commitment to Impact and ESG
Earlybird Health has demonstrated a strong commitment to environmental, social, and governance (ESG) goals, as outlined in its inaugural 2022 impact and ESG report. As an article 8 fund under the EU’s Sustainable Finance Disclosure Regulation (SFDR), the fund integrates ESG considerations into its investment approach and daily operations, driving positive impact across its portfolio.
