The French multi-stage venture capital fund focuses on investing in AI-powered solutions in the consumer, healthcare, financial services and energy sectors.
Cathay Innovation, the venture capital unit of France-based global investment firm Cathay Capital, has raised $1bn (€877m) at final close for its third fund. This commitment makes Fund III the biggest fund dedicated to artificial intelligence (AI) in the European Union, according to Cathay Innovation.
Fund III attracted investments from a wide range of institutional investors and multinational firms, which Cathay Innovation said were all keen to gain access to AI startup technologies with the potential to transform industries.
These include France-based Sanofi, TotalEnergies, Valeo, BNP Paribas Cardif, Groupe SEB and Groupe ADP from the first close. Several international industry players also invested, including Vale Ventures, which is owned by Brazilian mining giant Vale, and Copec WIND Ventures, the strategic venture arm of Chile-based energy and retail company Copec.
“By supporting and helping entrepreneurs scale — and uplifting new pioneers who put innovation at the service of the common good — we believe we can accelerate the transformation of European industry and create lasting economic and societal impact,” said Mingpo Cai, founder and chairman of Cathay Capital and Cathay Innovation.
Cai went on to say the successful close of Fund III was not only a testament to past financial performance, but also to his firm’s tech investment approach.
Investee companies
Founded a decade ago to invest in transformative businesses across Europe, North America, Asia, Latin America and Africa, Cathay Innovation currently manages over €2.5bn in assets. It has invested in more than 120 startups, including Chinese e-commerce firm Pinduoduo and Spanish EV charging hardware maker Wallbox.
To date, Fund III has invested €235m in 14 startups across Europe, the US and Asia, which are all focused on applying AI technology to four key sectors: healthcare, financial services, consumer and energy.
Investee companies include retail energy platform David Energy, intelligent robotic cleaning systems firm Beatbot, AI-driven wealth manager Range and Nabla, an AI co-pilot for medical practitioners. Fund III will be able to invest up to €100m in one single startup.
“AI is a general-purpose technology — like electricity — with the potential to reinvent entire industries while shifting the role of startups from disruptors to transformation partners. Over the past decade, we’ve built the world’s largest venture capital platform that can connect startups and corporates under one roof — combining capital with industrial innovation to drive this transformation together and create the jobs of tomorrow,” said Denis Barrier, co-founder of Cathay Innovation.
