European Deeptech startups get one other shot within the arm this week within the form of IQ Capital’s new $200m enterprise fund. The brand new fund takes its belongings beneath administration to greater than $1bn.
The London and Cambridge, UK-based deep tech VC has closed its fourth Enterprise Fund at that quantity, whereas additionally launching its second $200m Development Fund to offer later-stage funding, primarily in its enterprise portfolio. The means the VC will have the ability to deploy capital throughout extra funding phases.
Since its basis in Cambridge in 2007, IQ Capital has invested in over 100 deep tech startups reminiscent of Thought Machine (banking), Nyobolt (battery charging) and Speechmatics (speech recognition). It’s additionally had exits to Oracle, Google, Apple and Fb, together with a lot of IPOs.
Buyers in Fund IV embody international establishments, funds-of-funds, household workplaces, and British Affected person Capital, the most important LP investing in UK enterprise capital.
Kerry Baldwin, co-founder, Managing Accomplice stated deep tech funding was “on the forefront of investor’s minds, topping $17bn in 2022.”
I requested her if it had been exhausting to boost the fund on this market: “Clearly it’s been fairly exhausting to boost on this in market atmosphere, placing it bluntly. However we’re doing one thing completely different.”
“We’ve raised our flagship fund for deeptech and that’s the place we make investments each day, in actually, actually deep tech. These deep tech teachers really like us to come back all through, like we’ve accomplished with Thought Machine, like we’ve accomplished with Speechmatics. However yeah, it’s been an attention-grabbing funding atmosphere.”
Given the large debate occurring round Generative AI, I requested her if Europe goes to have the ability to compete with the most important Large Tech platforms on that entrance.
“We’ve received distinctive expertise in Europe. Generative AI has received a protracted solution to go, but it surely’s not going to resolve actual world issues simply but,” she stated.
There’s been criticisms of how College spinouts are hampered by their Alma Maters. What’s her view?
She informed me: “That’s the place Cambridge College has been completely different and clearly our roots from Cambridge and in London, and throughout Europe. I feel it’s going to be attention-grabbing to see the outcomes of the UK Authorities assessment that’s popping out in early September on this.”