Cathay Innovation Launches Third $1B Multi-Stage Startup Fund

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Global venture company Katai Innovation announced its third fund, targeting 1 billion euros ($1.05 billion) for a wide range of companies and technologies around the world.

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With Fund III, Cathay Innovation is launching what is sure to be one of the largest multi-stage venture capital funds to emerge in Europe, spanning Series A, B and other later stage startups. The company said it intends to act as a lead or co-investor with an investment of between $5 million and $80 million.

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The new fund follows its own $550 million second fund in 2020, which, like the first fund before it, was also a multi-stage fund. In tandem with Cathay Innovation, which is part of a broader private equity structure known as Katai Capitalis also entering vertical industries, having received just last month launched a new $110 million fund. aimed at the crypto sector. A month before, Cathay Capital itself launched a $500 million health fund.

On the background economic downturn, startup declineas well as Venture Market Excitementit looks like someone somewhere in Cathay Towers might have missed the memo.

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“Despite current market conditions and uncertainty, we firmly believe that the digital revolution will only continue to accelerate and that leading technology companies will thrive with strong growth and pricing ability,” said Denis Barrier, CEO and co-founder of Cathay Innovation. tech crunch. “All industries will face massive change over the next ten years as modern digital infrastructure better links products, customer needs and the wider value chain. As a result, today’s markets will be redefined, and companies that do well with digital transformation will have the opportunity to become leaders in much larger markets than before.”

Cathay Innovation Co-Founder and CEO Denis Barrier

Cathay Innovation’s focus is as broad as it gets, spanning virtually every corner of the industrial spectrum, from fintech and mobility to retail and energy. But behind what at first glance may seem like haphazard investing, there is a deep strategy. Businesses often need to build relationships with complementary companies from other industries, for example as supply chain partners or even as paying customers, so by investing in such a wide range of businesses, Cathay can help build bridges across sectors.

“We specifically created our funds to include a diverse ecosystem of leading multi-industry corporations not only as LPs (Limited Liability Partners) but also as strategic partners to help tailor our investment thesis to industries such as healthcare, finance, consumer products , energy, mobility and logistics,” Barrier explained. “This has several advantages as it gives access to invaluable industry experience and allows cross-sector fertilization; it connects startups with potential partners or important customers who can help them scale; and it helps to catalyze the digital transformation efforts of our corporate partners while driving innovation in real industries.”

The focus of the new fund will be on Series A and B rounds, but the company said it plans to have sufficient reserves for subsequent growth rounds and will target investments in UN-listed companies. Sustainable Development Goalsincluding good health and well-being; decent work and economic growth; industry, innovation and infrastructure; and climate.

Global normalization

While Cathay Innovation is by no means a locally-focused foundation, its roots are firmly rooted in Europe, having originally opened a store in Paris in 2015, where Barrier is now based. More than half of Cathay Innovation’s global team of nearly 30 people are also based in Europe, and more than a third his portfolio companies also native to Europe.

However, since its founding seven years ago, Cathay Innovation has expanded with new offices and teams in North America, Asia and Africa.

“While we invest globally and our core funds primarily span Europe, North America and Asia, we have always maintained a strong European presence in terms of the local team, LPs and portfolio companies,” Barrier said. “We have invested in many leading European startups.”

Cathay Innovation Paris Team

Many of these startups have seen notable success, including Spanish electric vehicle charging startup Wallbox, which now traded on the New York Stock Exchangeand delivery company Glovo, which was recently acquired by delivery hero. More broadly, Cathay Innovation has invested in 120 companies through two IPOs, 5 acquisitions and 19 unicorns.

“We founded Cathay Innovation to support new start-ups transforming key industries and with the belief that the best innovations come from all corners of the world – and that will continue with Fund III,” Barrier added.

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