Venture capital investor Cathay Innovation announced today the launch of a $1 billion global fund investing in startups that support industrial and social sustainable transformation.
The new fund, Cathay’s third VC fund, will focus on sectors including consumer, enterprise software, AI, inclusive fintech, digital health, new mobility, retail, and energy, with investments ranging from €5 million to €80 million. Cathay will invest as a lead or co-investor with reserves for follow-on rounds in key areas including Europe, Asia, and North America.
At close, the fund is expected to be one of the largest multi-stage venture capital funds globally. The fund is backed by institutional investors and multinational corporations including Sanofi, TotalEnergies, Valeo, BNP Paribas Cardif, Groupe SEB, Groupe ADP (Paris Aéroport), among others.
Denis Barrier, Co-Founder of Cathay Innovation, said:
“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.”
Cathay Innovation stated that it looks to bring greater purpose to investments with the new fund, utilizing a focus on both transformation potential and financial returns. Key elements of the investment approach include heavy support from the fund’s multi-sector partners to collaborate with portfolio companies to scale innovation in real-world industries, integrating sustainability into every step of the investment cycle, and including investors with deep local expertise spanning the world’s innovation hubs to identify emerging trends while granting startups access to new markets.
Mingpo Cai, Founder, and Chairman of Cathay Capital and Cathay Innovation, said:
“We’re committed to helping create the economy of tomorrow while having a positive impact on society. 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.”