Swiss Biotech Startup InVirtuoLabs Secures €2.85 Million to Advance AI-Powered Drug Discovery

Lugano-based InVirtuoLabs, a biotechnology startup integrating artificial intelligence with molecular simulations, has raised €2.85 million in its first funding round. The investment aims to accelerate the drug discovery process by reducing both development time and costs in the pharmaceutical industry.

The startup gained recognition after winning the Boldbrain Startup Challenge, an acceleration program organized by the Agire Foundation in collaboration with the USI Startup Center at the University of Italian Switzerland (USI). The initiative is supported by the Department of Finance and Economy and BancaStato. Additionally, InVirtuoLabs is backed by the USI Startup Center, benefiting from incubation programs designed for innovative ventures.

According to Gianvito Grasso, Founder and CEO of InVirtuoLabs, who is also a researcher and lecturer at the IDSIA–Dalle Molle Institute for Artificial Intelligence (USI-SUPSI), “The integration of artificial intelligence, chemistry, and molecular biophysics is radically changing the way we develop drugs.” He emphasized that their system goes beyond analyzing existing data, as it generates and tests billions of new molecules to determine their efficacy and safety. He noted that their focus is on accelerating treatments for rare diseases, a field still lacking adequate therapeutic solutions.

InVirtuoLabs’ CEO, Gianvito Grasso

InVirtuoLabs, founded in 2024 by Gianvito Grasso, Stefano Muscat, and Sertac Yeltekin, is pioneering a new approach in drug discovery by leveraging AI-driven multimodal learning, active learning, and generative chemistry in combination with physics-based simulations. This hybrid approach enables the company to efficiently explore vast chemical spaces, identifying and optimizing promising drug candidates.

With a team comprising experts with over 50 years of experience in the pharmaceutical industry—previously working at companies such as Pfizer, Novo Nordisk, Baxter, and Helsinn Healthcare—as well as specialists in machine learning, InVirtuoLabs is positioning itself as a key player in the industry.

Over the next 18 months, the startup plans to expand its team, initiate strategic collaborations, and enhance its platform’s capabilities. At the core of InVirtuoLabs’ technology is the Next Generation Virtual Lab, a proprietary platform designed to refine drug discovery methods. The company claims that this system can double success rates compared to conventional research methods, while also significantly reducing development costs—currently estimated at over €2.4 billion per drug—and cutting down the industry-standard 12-year timeline for bringing new treatments to market.

InVirtuoLabs Co-Founder and COO Sertac Yeltekin

Sertac Yeltekin, Co-Founder and COO of InVirtuoLabs, highlighted the company’s strategic approach, stating that the project is built upon “three fundamental pillars: attractiveness to investors, ability to recruit and retain global talent in AI, and potential to generate concrete social impact.”

The startup’s platform has already yielded its first major achievement: the development of a protocol for drugs targeting nuclear receptors, which play a crucial role in regulating key biological functions such as metabolism, cell growth, and inflammatory response. These receptors are involved in over 100 diseases, including metabolic disorders and certain types of cancer.

The company is currently applying this protocol to a receptor associated with high-incidence metabolic diseases, with the aim of expediting the discovery of new treatment options.

InVirtuoLabs’ CCO, Demet Olesen

Demet Olesen, Chief Commercial Officer at InVirtuoLabs, emphasized the importance of industry engagement, stating that since the company’s inception, they have been actively refining their models through interactions with biotech and pharmaceutical firms. “These early conversations not only help us sharpen our technology but also ensure we’re addressing real-world industry needs,” she said.

Looking ahead, InVirtuoLabs envisions a future where AI plays a central role in revolutionizing drug discovery. Gianvito Grasso concluded by reaffirming their mission: “Our vision is clear: to democratize access to innovative therapies, making drug discovery faster, more precise, and economically sustainable.”