Cathay Innovation launches third $1 billion multi-stage seed fund – TechCrunch


Global venture capital firm Cathay-Innovation announced its third fund, targeting €1 billion ($1.05 billion) across a wide range of companies and technologies around the world.

With Fund III, Cathay Innovation is launching what is sure to be one of the largest multi-stage venture capital funds to emerge from Europe, encompassing Series A, B and other startups at a later stage. The company said it intends to serve as lead or co-investor, with investments ranging from $5 million to around $80 million.

The new fund follows its $550 million for a second fund in 2020, which – like the inaugural fund before it – was also a multi-stage fund. Meanwhile, Cathay Innovation, part of the private equity firm known as Capital Cathayhas also entered specific verticals, having last month launched a new $110 million fund directed at the crypto industry. The month before, Cathay Capital itself launched a $500 million healthcare fund.

On the bottom of economic downturns, startup recessionsand Understanding the venture capital marketit looks like someone somewhere in Cathay Towers missed the memo.

“Despite the current market conditions and uncertainty, we are confident that the digital revolution will only accelerate and that big tech companies will do extremely well, showing strong growth and pricing power” , said Denis Barrier, CEO and co-founder of Cathay Innovation. Tech Crunch. “Over the next ten years, all industries will face massive change as modern digital infrastructure better connects products, customer needs and the wider value chain. As a result, today’s markets Today will be redefined and companies that adapt well to digital transformation will have the opportunity to lead much larger markets than before.”

Denis Barrier, co-founder and CEO of Cathay Innovation

Cathay Innovation’s focus is about as broad as it gets, covering just about every corner of the industrial spectrum, from fintech and mobility, to retail and energy. But behind what might at first appear to be a dispersion investing philosophy, there is a deep strategy. Businesses often need to build relationships with complementary businesses in other industries, for example as supply chain partners or even as paying customers. So, by investing in such a wide range of businesses, Cathay can help build bridges between sectors.

“We have specifically built our funds to include a diverse ecosystem of leading multi-industry companies, not just as LPs (limited partners), but as strategic partners to help tailor our investment thesis to sectors such as health, finance, consumption, energy, mobility and logistics,” explained Barrier. “This has several advantages, as it provides access to invaluable industry expertise and enables cross-sector fertilization; it connects startups to potential partners or important customers who can help them scale; and it helps drive the digital transformation efforts of our business partners while bringing innovation to life in real-world industries. »

The new fund will primarily focus on Series A and B rounds, but the firm said it plans to hold enough reserves for later growth rounds and will target investments in UN-relevant companies. . Sustainable Development Goals, integrating good health and well-being; decent work and economic growth; industry, innovation and infrastructure; and the climate.

Global standard

Although Cathay Innovation is by no means a location-specific fund, its roots are firmly planted in Europe after initially settling in Paris in 2015, where Barrier is now based. More than half of Cathay Innovation’s global team of nearly 30 people is also based in Europe, and more than a third of its portfolio companies so I’m from Europe.

That said, since its inception seven years ago, Cathay Innovation has grown with new offices and teams in North America, Asia and Africa.

“While we invest globally, with our renowned funds primarily covering Europe, North America and Asia, we have always maintained a strong European presence in terms of local team, LPs and of portfolio companies,” Barrier said. “We have invested in many top European startups.”

The Parisian team of Cathay Innovation

Many of these startups have gone on to make notable exits, including Spanish electric vehicle charging startup Wallbox, which now trades on the New York Stock Exchangeand the delivery company Glovo which was recently acquired by Delivery Hero. More broadly, Cathay Innovation has invested in 120 companies, completing two IPOs, 5 acquisitions and 19 unicorns in the process.

“We launched Cathay Innovation to support emerging startups transforming key industries and with the belief that the best innovations come from all corners of the world – which will continue with Fund III,” added Barrier.


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