Forbion fund raises €75 million for 'Planetary Healthcare'

Forbion, an investment company, has announced the launch of its new fund, BioEconomy I, which has already secured €75 million in initial capital. The fund aims to invest in sustainable and innovative biotech solutions, such as cotton grown in biotechnological reactor vessels and biodegradable pesticides targeting specific insects.

A new frontier for Forbion
Traditionally, Forbion has focused on funding young medical companies developing new drugs. However, according to managing partner Sander Slootweg, the biotechnological expertise gained from these ventures can also be effectively applied to investments in sustainability, or what Slootweg refers to as 'planetary healthcare.'

Innovations in biotechnology
To identify promising investment opportunities, Forbion has enlisted the support of notable figures in the biotech industry, including Feike Sijbesma, former CEO of DSM and current chairman of Philips, and Onno van de Stolpe, former CEO of Galapagos.

The fund plans to finance ten to twelve startups working on innovations in food, agriculture, materials, and environmental technology. One notable example mentioned by Slootweg is the cultivation of cotton in reactor vessels. This process involves extracting stem cells from cotton seeds and growing the cotton cells in a nutrient-rich solution. The same technique can also be applied to produce leather.

Environmental and economic impact
The benefits of large-scale application of this technology are substantial. "Cotton is considered one of the most polluting crops in the world," Slootweg explains. "Producing one kilogram of cotton requires 11,000 liters of water. In a reactor vessel, the water requirement is significantly lower. Additionally, if manufacturers can imbue cotton cells with the desired properties in advance, there's no need for bleaching or dyeing."

Slootweg emphasizes that large-scale application is crucial for making a real impact and offering new products at competitive prices. This economic consideration is why Forbion is not investing in lab-grown meat at the moment. "The cost of cultured meat is still too high, making it a niche product for the foreseeable future."

Targeted pest control
Forbion sees potential in investing in companies developing alternatives to petrochemical-based pesticides, which rely on petroleum as a primary raw material. Through biotechnology, it should be possible to select small proteins that target harmful insects specifically. These biodegradable pesticides would be environmentally friendly.

The total budget for the new fund is expected to increase to over €100 million, with a goal of raising €150 million. Even at this target, the amount is significantly lower than what Forbion and similar investment companies have previously raised for funding medical ventures. Last year, Forbion secured €600 million for its latest medical venture fund.

This difference, Slootweg explains, is due to the lengthy and costly process of drug development, which requires extensive patient research. In contrast, the introduction of new food products or materials from biological reactors is relatively easier and less expensive.

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