– Cathay Innovation has closed its Fund III at $1 billion, making it the largest AI-dedicated fund in the European Union.
– €235 million has already been deployed across 14 investments, with 50% of them in Europe.
– Cathay Innovation is now the largest French private VC by capital deployed into local startups.
– Fund III targets AI solutions in four key sectors: digital health, fintech, consumer, and mobility/energy.
– The fund invests globally, with a focus on Europe, the U.S., and Asia.
Investors include major French corporations like Sanofi, TotalEnergies, Valeo, BNP Paribas Cardif, Groupe SEB, and Groupe ADP.
– International investors include VALE VENTURES LTD (Latam) and Copec WIND Ventures, among others.
– The fund prioritizes ecosystem synergies between startups and corporates to support industry-wide transformation.
– Cathay Innovation’s platform connects startups with its global corporate network, enabling strategic partnerships, co-investments, and business development.
– Successful collaborations include companies like Owkin, AQEMIA, and Inato in digital health.
– The firm emphasizes a uniquely European VC model, focusing on responsible innovation and industrial transformation.
– Fund III can invest up to $100 million in a single startup, targeting all growth stages.
– Ming-Po Cai, founder and chairman of Cathay Capital and Cathay Innovation: “The successful close of Cathay Innovation Fund III is not only a testament to past financial performance, but to our unique tech investment approach, focusing on creating mutually beneficial ecosystem synergies whilebringing value-added capital to local champions.”
– Denis Barrier, Co-founder of Cathay Innovation: “At a time when Europe is approaching AI with purpose — prioritizing responsible innovation, strategic autonomy and resilience — Fund III reflects a uniquely European model with global scale: built not just for growth, but for industrial transformation and societal benefit.”
– Investments span multiple regions: Europe, the U.S., and Asia.
– Portfolio companies include:
Healthcare: Nabla, AQEMIA, Bioptimus, Nelly
Financial Services: Range, Flowdesk, Ping++
Consumer: Ghost, Reebelo, Imagino, Mogic, Beatbot
Energy: David Energy, Entalpic
– The geographic reach is a strategic asset, enabling cross-regional learning and market access.
– Fund III is classified as Article 8 under the EU’s SFDR, underscoring its environmental and social commitment.
– The fund supports AI-driven industrial transformation with a focus on societal benefit and job creation.
