Paris-based VC Cathay Innovation has closed a €1 billion fund to back AI startups globally, from early to late stages. As an Article 8 fund, it promotes environmental and social goals.
- Founded in 2015 by Mingpo Cai and Denis Barrier, Cathay Innovation is a global venture capital platform partnered with Cathay Capital. The firm operates offices in San Francisco, New York, Paris, Berlin, Shanghai, Beijing, and Singapore and manages $1.5 billion in assets.
- In 2022, Cathay launched a fund to support Series A and B startups focused on AI, digital health, mobility, and energy tech, intending to accelerate sustainable industry transformation. In 2023, the firm announced it would allocate €50-100 million from this fund specifically to back French AI founders.
- The fund plans to invest in around 30 startups at various stages, with varying investment sizes by company. Cathay intends to invest at least €50 million for leading portfolio companies.
- Most of the capital will be directed to startups in Europe, while the remainder will support US and Asian companies. The focus remains on AI-driven startups in sectors such as digital health, fintech, consumer services, mobility, and energy.
- To date, Cathay has invested €235 million in 14 companies, half of which are European. Notable portfolio companies include Nabla, the French AI assistant for doctors, biotech firm Bioptimus, and materials discovery startup Entalpic.
- The fund has attracted support from both financial and strategic limited partners, including major corporations like Sanofi, Vale, BNP Paribas Cardif, Total Energies, Valeo, and Copec.
