Cathay Innovation has just redefined the perimeter of its third fund by devoting it entirely to artificial intelligence. With 1 billion euros raisedthis pivot makes it one of the most important AI funds on the continent, alongside EQT Ventures and AVP. Initially designed to finance the sustainable transformation of industries through healthtech, mobility or energy, Fund III now becomes a full IA thesis.
A structuring repositioning
Announced in 2022, the Fund III first aimed at Series A and B startups applying digital health, energy or services technologies. In 2023, a first turn had been initiated with a dedicated envelope of 50 to 100 million euros reserved for French IA founders. This targeting becomes today the central strategic line of the fund, with approximately 30 targeted startups On stadiums ranging from start to late internship. Tickets going up to 50 million euros can be deployed on the most promising companies.
Half of the investments will be made in Europe, the rest between the United States and Asia. In France, the first investments include Nabla (AI assistant for doctors), Bioptimus (biomedical models) and Entalpic (discovery of materials).
By devoting his fund to AI, Cathay positions himself as a long -term investorcapable of following its holdings over time without depending on additional towers.
A bridge between startups and industrialists
Another peculiarity of this fund: half of the LPS are industrial or corporate actorsamong which Sanofi, Vale, BNP Paribas Cardif, Totalenergies, Valeo or Copec. Their presence is not only institutional, it aims to promote the concrete adoption of IA solutions Developed by portfolio startups.
The model has already borne fruit. In 2023, AqemiaStartup IA for the discovery of drugs, has signed a contract $ 140M with Sanofi. For his part, Owkinanother company supported by Cathay, has been collaborating with the pharmaceutical giant since 2021, through a strategic investment of $ 180M.
A new generation of VCS IA?
Cathay is not alone in wanting to structure European leadership in AI. AVP (with an objective of 1.5 billion euros) or EQT Ventures (2.4 billion raised in 2022) also deploy massive funds. But few actors have, like Cathay, operated on a full tilting of an existing fund towards an IA thesisby betting both on capital depth and industrial anchoring.
The success of this strategy will now depend on the capacity of the platform to federate talents, capture good signals and orchestrate transversal cooperation worldwide.
