Cathay Innovation Expands with €1bn AI Fund
Funding | 27 May 2025 | Cathay Innovation
Cathay Innovation, a global venture capital firm headquartered in Paris, has closed a monumental €1 billion fund aimed at artificial intelligence (AI). This third fund is significant for the firm, marking its entry into the elite circle of continental European VCs crossing the billion-euro fund mark. Approximately 30 start-ups will benefit from the fund, with Cathay targeting sectors like digital health, fintech, consumer services, mobility, and energy. Founded to transform industries sustainably, the fund demonstrates a strategic focus on AI deployment, with half the investments planned for Europe and the rest for the US and Asia. Cathay has already deployed €235 million, supporting entities like French Nabla and Bioptimus. Besides financial backers, Cathay’s LPs include strategic industry leaders like Sanofi and Total Energies, which position them uniquely to facilitate start-up engagement with the broader industrial ecosystem. The fund, adhering to Article 8, imposes social and environmental promotion mandates and further demonstrates Cathay's commitment to sustaining AI-driven industrial transformation.
Sectors
- Venture Capital
- Artificial Intelligence
- Pharmaceuticals and Biotechnology
- Energy
Geography
- Europe – Half of Cathay Innovation's fund investments are planned for European startups, demonstrating a significant geographic focus.
- France – As the location of Cathay's headquarters and multiple funded startups, France plays a pivotal role in the article's context.
- United States – A notable portion of the fund's investments are allocated to the US, emphasizing its role as a key market for Cathay.
- Asia – Cathay Innovation allocates a share of its fund to Asia, illustrating its strategic outreach into this innovative region.
Industry
- Venture Capital – Cathay Innovation operates as a global VC firm, creating and managing funds that target emerging high-growth sectors and startup companies.
- Artificial Intelligence – The article focuses on a fund specifically dedicated to AI, indicating its primary role in Cathay Innovation's investment strategy.
- Pharmaceuticals and Biotechnology – Cathay Innovation's fund has notable strategic LPs, including pharmaceutical giant Sanofi, and is backing firms like Aqemia for drug discovery, showcasing investment interest in biotech applications of AI.
- Energy – Cathay Innovation targets startups in the energy sector, with LPs like Total Energies and Copec, focusing on AI applications within this industry.
Financials
- 1bn – The total size of Cathay Innovation's new AI-focused fund.
- 235m – Amount already deployed from the fund to 14 companies.
- 50m – Minimum investment amount intended for portfolio champions during their lifetime.
- 140m – Value of the deal signed between Aqemia and Sanofi.
- 180m – Investment by Sanofi into startup Owkin, another AI project in Cathay's portfolio.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Cathay Innovation | Venture Capital Firm | Company | Global VC firm based in Paris, managing a €1bn fund focused on AI. |
| Sanofi | Strategic Limited Partner | Company | Pharmaceutical company engaging with Cathay's portfolio companies, notably in AI-driven drug discovery. |
| Aqemia | Portfolio Company | Company | Paris-based AI startup focusing on drug discovery, backed by Cathay and engaged in a deal with Sanofi. |
| Nabla | Portfolio Company | Company | French AI assistant company for doctors, backed by Cathay. |
| Bioptimus | Portfolio Company | Company | Biotech startup backed by Cathay. |
| Entalpic | Portfolio Company | Company | Materials discovery startup backed by Cathay. |
| Vale | Strategic Limited Partner | Company | Brazilian mining company, an industrial LP of Cathay's fund. |
| BNP Paribas Cardif | Strategic Limited Partner | Company | French bank involved as a strategic investor in the fund. |
| Total Energies | Strategic Limited Partner | Company | Energy company partnering with Cathay's initiatives in energy sector technology. |
| Valeo | Strategic Limited Partner | Company | Automotive supplier and strategic LP in the fund. |
| Copec | Strategic Limited Partner | Company | Chilean energy company, investing strategically in Cathay's fund. |
| Denis Barrier | Spokesperson | Person | Cofounder of Cathay Innovation, discussing fund strategy and partnerships. |