Portugal-based Biovance Capital Partners, a life sciences venture capital firm, has announced the first close of its new biotech fund, Biovance Capital Fund I, at €51m (US$56m).

Biovance Capital will invest in disruptive drug development companies across Europe with a special focus on early-stage biotech companies in Portugal and Southern Europe. The investment team will target seed and Series A rounds, with ticket sizes ranging from €1.5 – 6m. The fund will provide crucial capital and support for the development of novel transformational therapies.

Key investors include the EIF, the national promotional bank Banco Português de Fomento (BPF), and the European Commission, through the Portugal Tech and InvestEU programmes.

Additional investors include Caixa Capital (Caixa Geral de Depósitos Group), Ageas Pensions, EDP Pension Fund, and private investors from the USA and Europe. Given the strong interest from additional investors seeking to capitalize on this largely untapped market opportunity, the team expects to expand the fund until it reaches its final close over the coming months.

The fund’s investment team is made up of two biomedical scientists and one medical doctor. They bring track records in both the pharmaceutical and VC industries.

“As the first-ever biotech dedicated fund, Biovance Capital Fund I marks a significant milestone in the development of Portugal’s biomedical ecosystem,” said managing partner Ricardo Perdigão Henriques.