Paris-based VC Serena, an early backer of AI unicorn Dataiku and electric vehicle (EV) charging scaleup Electra, has closed €200m for a new flagship fund dedicated to European early-stage startups in applied AI and the energy transition.
The fund has a hard cap of €250m, which Serena expects to hit by 2026. It will back startups from seed to Series B, with 70% of investments targeting French companies.
“Our flagship funds have always focused on big transitions where we can see leaders emerge in the next 10 years,” says Paul Moriou, partner at Serena. “Applied AI and the energy transition are the continuation of this.”
Serena will back climate tech startups in the energy sector with a focus on infrastructure. The firm has previously backed French startup Accenta, which leverages AI to reduce the carbon footprint of buildings.
The new fund will also target businesses applying AI to use cases in sectors ranging from logistics and manufacturing to energy.
Serena’s new fund has already invested in four companies, including French startup Formality, which builds an AI-powered platform for contract management. In the other three deals, which are undisclosed, Serena backed businesses applying AI to business process automation, energy optimisation for enterprise EV fleets, and supply chain procurement.
The firm will invest in up to 20 companies in total with tickets ranging from €3-15m. An “important part” of the fund will be kept for follow-ons, says Moriou, with capacity for up to €30m in total investment for top portfolio companies.
A growing strategy
It is Serena’s fourth fund since the firm launched in 2008, with the previous one closing at €300m in 2021; Moriou says this included the €220m flagship fund as well as a complementary €80m fund.
“Our fourth flagship fund is larger than our third,” says Moriou. “Our strategy is only growing.”
Serena says 80% of historical LPs returned to back the new fund, including the European Investment Fund (EIF) and public bank Bpifrance. LPs include a mix of institutional and private investors in France and Europe.
Alongside its flagship fund Serena is currently deploying a €100m early-stage fund to back startups building infrastructure software — the technologies behind consumer-facing applications like ride-hailing apps, AI chatbots and crypto wallets.
It also co-operates an €85m fund dedicated to sustainability.
