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 property 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 be capable to deploy capital throughout extra funding phases.
Since its basis in Cambridge in 2007, IQ Capital has invested in over 100 deep tech startups similar to Thought Machine (banking), Nyobolt (battery charging) and Speechmatics (speech recognition). It’s additionally had exits to Oracle, Google, Apple and Fb, together with plenty of IPOs.
Buyers in Fund IV embody world establishments, funds-of-funds, household places of work, and British Affected person Capital, the biggest 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 daily, in actually, actually deep tech. These deep tech lecturers truly like us to return all through, like we’ve completed with Thought Machine, like we’ve completed with Speechmatics. However yeah, it’s been an fascinating funding atmosphere.”
Given the large debate occurring round Generative AI, I requested her if Europe goes to have the ability to compete with the main Huge Tech platforms on that entrance.
“We’ve obtained distinctive expertise in Europe. Generative AI has obtained a protracted option to go, but it surely’s not going to unravel 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 believe it’s going to be fascinating to see the outcomes of the UK Authorities evaluation that’s popping out in early September on this.”