Cathay Innovation goes all-in on sustainability with €1 billion fund

Announced from its Paris office, global VC fund Cathay Innovation has revealed its newest fund, totaling €1 billion, is aimed at supporting startups working in enterprise software, AI, fintech, digital health, new mobility, retail, and energy sectors. The firm is focusing on Series A and B investment rounds with ticket sizes ranging from €5 million to €80 million, and says that additional capital has been set aside for further growth round support.

Building on a successful track record that includes over 120 investments across Europe, North America, Asia, Latin America, and Africa, with 19 unicorns, and 7 exits in the portfolio, the thinking at Cathay is that the next decade will see the massive transformations of ‘digitalisation’ that we’ve heard so much of for the past decade, across all industries.

Needless to say, the pandemic truly kicked this promise into high gear, and Cathay sees the combination of this change and strong consumer focus on sustainable technologies as the main focus of its €1 billion layout across Europe, Asia, and North America.

“We believe the time is now to accelerate digital transformation over the next ten years as innovation represents the biggest opportunity to take on some of the world’s largest challenges,” commented Cathay’s Denis Barrier. “With Fund III, we now have tailored investment theses for healthcare, finance, consumer, energy, mobility and logistics – investing in next-gen technologies that will be pervasive in global industries to deliver better, more efficient products and solutions addressing the needs of end customers.”

Cathay Innovation's newest fun is backed by institutional investors and multinational corporations including Sanofi, TotalEnergies, Valeo, BNP Paribas Cardif, Groupe SEB, Groupe ADP (Paris Aéroport) and others.

“Fund III marks an important milestone in our journey, building a multi-industry platform that connects large corporations and startups to collaborate, exchange knowledge and support the sustainable transformation of all stakeholders. We’re honored to have the trust of new and existing investors, partners and industry leaders who leverage the Cathay platform to take the lead in their respective fields and work together to drive meaningful change,” concluded Cathay's Ming-Po Cai.