Cathay Innovation launches third fund at €1B; plans to invest in startups operating in these sectors

Cathay Innovation, a Cathay Capital affiliated multi-stage global VC firm that invests in startups positively impacting the world through technology, announced on Tuesday the launch of its third venture capital fund. A €1B global fund, Fund III will back startups that are accelerating the sustainable transformation of industries and society.

According to Cathay Innovation, Fund III will be one of the largest multi-stage venture capital funds globally and is backed by institutional investors and multinational corporations, including Sanofi, TotalEnergies, Valeo, BNP Paribas Cardif, Groupe SEB, and Groupe ADP (Paris Aéroport), among others.

What to expect from the new fund?

In a statement, Cathay Innovation says that all sectors will see significant change over the next ten years as markets are redefined by new digital infrastructure that connects goods, consumer requirements, and the whole value chain. By supporting technologies, business models, and platforms for digital and sustainable change, Cathay Innovation’s new fund aims to empower businesses to dominate the bigger marketplaces of the future.

Mingpo Cai, founder of Cathay Capital and Cathay Innovation, says, “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 honoured 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.”

Fund III will back series A, B and late-stage startups in the consumer, enterprise software, AI, inclusive finance, digital health, new mobility, retail, energy, and other areas. The firm will invest as a lead or co-investor with reserves for follow-on rounds in Europe, Asia, and North America. Cheque sizes will range from €5M to €80M.

Currently, Cathay Innovation has about €2B in assets under management spread across three marquee funds and specialised vehicles such as C.Entrepreneur, Cartech, Smart Energy, Cathay AfricInvest Innovation, Seaya Cathay Latam, and the recently launched Ledger Cathay Capital fund for web3.

Transforming industries and society

Cathay Innovation’s new fund aims to bring purpose to investments by focusing on both transformation potential and financial returns, and leveraging various elements of its investment approach. These include:

• A global investment platform that brings together investors from innovation hotspots across the world with in-depth local knowledge to spot emerging trends and provide entrepreneurs access to new markets.
• A corporate ecosystem where the fund is substantially backed by top multi-sector firms operating internationally who act as strategic partners working with portfolio companies to accelerate innovation in real-world industries and their own digital transformation.
• A sustainable investment framework that integrates sustainability into every step of the investment cycle to measure, track and maximise the effect of startups while assisting entrepreneurs in creating more ethical, resilient companies.

Denis Barrier, co-founder of Cathay Innovation, says, “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. And this new generation of companies, larger and more sustainable than ever before, have the potential to have a greater impact on industries, society and the day-to-day lives of people everywhere.”

Brief about Cathay Innovation and Cathay Capital

Cathay Innovation invests in startups that are at the centre of the digital revolution. It has already made over 120 investments across Europe, North America, Asia, Latin America and Africa, that have gone on to raise over $16B and created 15,000 jobs since starting in 2015. 

Additionally, the firm has also backed 19 unicorns, including Chime, Glovo, Ledger, Owkin, Momenta, Sidecar Health, and ZenBusiness, with exits including the public offerings of Pinduoduo and Wallbox and the acquisitions of Glovo by Delivery Hero, Drivy by Getaround, Alkemics by Salsify and Trifacta by Alteryx.

Cathay Capital Group is a global investment firm backing companies at all stages throughout North America, Asia, Europe, and Africa. Its platform connects people – from investors and entrepreneurs to management teams and leading corporations – across continents to share knowledge and tools to scale and “achieve the extraordinary”. Founded in 2007, Cathay Capital currently manages over $5B in assets and has completed over 220 buyouts, growth and VC investments.