Cathay Innovation Closes EU's Largest $1B AI Venture Fund

Cathay Innovation has closed its third venture capital fund at $1 billion, establishing the largest AI-focused investment vehicle in the European Union. The fund targets startups in digital health, financial services, consumer technology, and energy/mobility, investing primarily in Series A to late-stage companies with a strong emphasis on sector-specific AI applications. It is backed by over 20 leading multinational corporations, including Sanofi and TotalEnergies, and leverages a global network to connect startups with industry leaders for strategic partnerships and business development. Cathay Innovation has already deployed significant capital across 14 investments, half of which are European startups, reinforcing France's position as a key AI and tech hub. Concurrently, the European Commission plans to launch the Scaleup Europe Fund to invest in AI, quantum, and other critical tech sectors, aiming to close the funding gap for scaling European tech companies and enhance the EU's economic security and technological sovereignty. This initiative also includes regulatory reforms to simplify startup incorporation, drawing inspiration from U.S. models to foster faster business establishment and scaling within the EU.