European Investment Fund, majority owned by European Investment Bank Group, has put €25m ($21.1m) in a biotechnology venture capital fund managed by Finnish fund manager Bio Fund Management.

The move makes the Luxembourg-based European Investment Fund the single largest investor in the newly created fund, expected to reach up to €100m. At present the fund has €81.55m and despite the target, investments up to €150m will be accepted. The Bio Fund Ventures III fund has also attracted investments from 12 other institutional investors.