Cathay Innovation, an investor in KaiOS and Glovo among others has raised €500M ($550M), for its second venture capital fund to invest in visionary entrepreneurs impacting the world through technology.
Cathay Innovation says through Fund II, one of three new funds recently recognized by the French Ministry of Economy and Finance, it will continue backing emerging companies at the center of digital revolution building on the success of its previous Fund.
The funding brings Cathay Capital’s total raise to €1.3 billion after it closed €800 million Midcap II fund and the €500 ($550) million target for Cathay Innovation II which will support start-ups as well as SMEs and ETIs (for Midcap II), helping them to finance and implement their projects.
Cathay’s €1.3 billion will invest in ventures in France, Germany and Spain, Asia and North America and will be invested in healthcare, high-tech industry, new modes of consumption, education and digital services.
The $550 Cathay Innovation II will narrow down on digital transformation and the industrial revolution through investments in artificial intelligence and cross-cutting applications for retail, fintech, healthcare, mobility and energy.
“We take a global approach to venture capital, which means that we are local everywhere. With offices across San Francisco, New York, Paris, Munich, Shanghai, Beijing and now Singapore — we ideally invest in startups at the inflection point of growth. These are companies that are really starting to pick up speed, when sales acceleration demonstrates that escape velocity can be reached soon,” said Denis Barrier, Managing Partner of Cathay Capital, Co-founder and CEO of Cathay Innovation.
“Our main focus is to fund anywhere from $5M to $40M for our initial investment, leading financing rounds of companies with revenues between $5M to $20M,” said Barrier.
As economies open up globally, Barrier says there is a post-crisis acceleration of the digitalization of the economy, and the world will see an even greater societal need for innovative startups to revolutionize antiquated industries and create a new standard for businesses everywhere — grounded in promoting sustainability and the wellbeing of people and society. Entrepreneurs will need the backing of investors who believe in their vision and have the capital to grow as well as a firm that goes beyond the traditional VC playbook.
“At Cathay Innovation, we’ve written a new playbook to better support this next wave of entrepreneurs to build long-standing committed global leading companies, in the AI and digital era. As we look forward to the next chapter, I’d like to share how our firm plans to invest in startups positively impacting this new world,” he added.
Cathay Innovation is backed by strategic investors — including Bpifrance, BNPP Cardif, Groupe ADP, Groupe SEB, Michelin, Valeo, GL events, Accor, L’Oreal, Dassault, JCDecaux Holding, Kering, Unilever and Pernod Ricard.
Cathay Innovation has invested in several early-stage companies around the world, who now have annual gross revenues that already exceed $100 billion, including Pinduoduo, Chime, KaiOS, Momenta, Kayrros, Glovo, Ledger, Lumi, OnTruck, Owkin, Trifacta and many more.