Venture Capital/News/ Cathay Innovation launches new €1bn fund The fund wants to back companies working on the sustainable transformation of industries. By Freya Pratty 12 July 2022 \Startup Life Techstars unexpectedly pulls out of Sweden mid-programme By Mimi Billing 23 March 2023 Venture Capital/News/ Cathay Innovation launches new €1bn fund The fund wants to back companies working on the sustainable transformation of industries. By Freya Pratty 12 July 2022 Cathay Innovation, a global VC firm based in Paris, has launched its third fund, with €1bn to deploy. The latest fund will be used to back companies working on the sustainable transformation of industries. How does Cathay work? Cathay Innovation was created in affiliation with the global private equity firm Cathay Capital. Cathay Innovation has offices in Paris, the US, China and Singapore. The latest fund has 15 companies acting as LPs, including Sanofi, Total Energies, Valeo, BNP Paribas Cardif, Groupe SEB, ADP and CMA CGM. As well as acting as LPs, the companies also partner with the startups the firm backs. What’s Cathay looking for now? The new fund is Cathay’s biggest to date (the first two funds were worth €287m and €650m respectively). The latest fund will be used to back companies across Europe, the US and Asia. It’s particularly focused on Series A and B, writing cheques between €5m and €80m, but has room for follow-on rounds too. “The focus this time is on the sustainable industrial transformation,” explains Denis Barrier, cofounder of Cathay. Industries are undergoing rapid change, he says, and Cathay wants to back the tech companies instigating that change. “We are 15% through the digital transformation,” says Barrier, “so we have 85% to go.” The new fund has a particular focus on consumer tech, enterprise software, AI, inclusive fintech, digital health, new mobility and energy tech. In Europe, Barrier says that sustainability — in particular energy and mobility — are interesting sectors. Where have they invested before? Launched seven years ago, Cathay has backed 19 unicorns, including delivery company Glovo and French fintech Ledger. Several of the companies it’s backed have gone on form partnerships with the companies acting as LPs. Owkin, a French AI drug discovery startup, signed a collaboration deal with multinational healthcare cooperation Sanofi, for example. Cathay’s secured seven exits, including, recently Spanish EV charging startup Wallbox and Pinduoduo, a Chinese agtech platform. Freya Pratty is a reporter at Sifted. She tweets from @FPratty and writes our sustainability-focused newsletter — you can sign up here. Related Articles Disruptive startups get less VC funding investment By Timo van Balen Click here to read more Miguel Vicente from Barcelona Tech City on the exhaustion of founder addiction By Tim Smith Click here to read more Founders Factory to launch startup hub in Italy By Amy O'Brien Click here to read more Escooters in Europe: the latest market updates By Connor Bilboe Click here to read more Most Read 1 \Startup Life UK government to reform ‘equity for visas’ residency application system 2 \Fintech Is Revolut really worth $33bn right now? 3 \Startup Life Techstars unexpectedly pulls out of Sweden mid-programme 4 \Deeptech The other funding gap: it’s not just unicorns that are leaving Europe 5 \Deeptech ‘There’s going to be a bloodbath’ — is generative AI a bubble?