Cathay fait pivoter son fund III et mise tout (1 milliard d’euros) sur l’AI

On Tue, May 27, 2025, Cathay Innovation announced a strategic realignment of its third fund, fully dedicating it to artificial intelligence (AI). With €1 billion raised, this pivot positions it among the largest AI funds in Europe, alongside EQT Ventures and AVP. Initially intended to finance sustainable transformations across industries such as healthtech, mobility, and energy, fund III now exclusively focuses on AI .

Initially announced in 2022, fund III targeted Series A and B startups applying digital technologies to health, energy, and services. By 2023, a shift began with a dedicated allocation of €50 to €100 million for French AI founders. This focus is now the fund's central strategy, aiming at approximately 30 startups from early to late stages. Investment tickets may reach up to €50 million for the most promising companies.

Half of the investments will occur in Europe, with the remainder split between the United States and Asia. Initial French investments include Nabla (AI assistant for doctors), Bioptimus (biomedical models), and Entalpic (materials discovery).

By dedicating its fund to AI, Cathay positions itself as a long-term investor , capable of supporting its investments over time without relying on additional funding rounds.

An additional feature of this fund is that half of the Limited Partners (LPs) are industrial or corporate entities , including Sanofi, Vale, BNP Paribas Cardif, TotalEnergies, Valeo, and Copec . Their participation aims to facilitate the practical adoption of AI solutions developed by the portfolio startups.

This model has already yielded results. In 2023, Aqemia , an AI startup for drug discovery, signed a $140 million contract with Sanofi . Another supported company, Owkin , has been collaborating with the pharmaceutical giant since 2021, through a strategic investment of $180 million .

Cathay is not alone in aiming to establish European leadership in AI. AVP (with a €1.5 billion target) and EQT Ventures (€2.4 billion raised in 2022) are also deploying significant funds. However, few have, like Cathay, completely transitioned an existing fund towards an AI thesis , combining deep capital and industrial integration.

The success of this strategy will depend on the platform's ability to attract talent, identify key opportunities, and orchestrate global cross-sector collaborations.

D’après FrenchWeb.