Cathay Innovation Closes $1B AI Fund to Transform European Industry

Cathay Innovation, a venture capital arm of Cathay Capital, has successfully secured $1 billion for Fund III, marking the largest AI-dedicated VC fund within the European Union. This fund focuses on four sectors: consumer, healthcare, financial services, and energy/mobility. Backed by a variety of institutional investors and multinational corporations, it aims to foster durable relationships with the industry ecosystem in Europe while maintaining global touchpoints, particularly with innovation hubs in the U.S. and China. To date, the fund has invested $235 million in 14 startups, 50% of which are located in Europe. With an emphasis on vertical AI solutions, Fund III embodies a novel approach towards venture capital, prioritizing collaboration between startups and established corporations to drive industry transformation. Headquartered in Paris, Cathay Innovation operates across Europe, America, and Asia. Their strategy highlights the importance of not replicating the American venture model but tailoring it to European strengths and needs. This approach not only seeks growth but also emphasizes industrial transformation and societal benefits.