As Deeptech and AI explodes, European Deeptech VC IQ Capital closes new $200M fund

European Deeptech startups get one other shot within the arm this week within the form of IQ Capital’s new $200m enterprise fund. The brand new fund takes its property below administration to greater than $1bn. 

The London and Cambridge, UK-based deep tech VC has closed its fourth Enterprise Fund at that quantity, whereas additionally launching its second $200m Progress Fund to offer later-stage funding, primarily in its enterprise portfolio. The means the VC will have the ability to deploy capital throughout extra funding levels.

Since its basis in Cambridge in 2007, IQ Capital has invested in over 100 deep tech startups corresponding to Thought Machine (banking), Nyobolt (battery charging) and Speechmatics (speech recognition). It’s additionally had exits to Oracle, Google, Apple and Fb, together with numerous IPOs.

Traders in Fund IV embody world establishments, funds-of-funds, household workplaces, and British Affected person Capital, the biggest LP investing in UK enterprise capital. 

Kerry Baldwin, co-founder, Managing Associate stated deep tech funding was “on the forefront of investor’s minds, topping $17bn in 2022.”

I requested her if it had been laborious to boost the fund on this market: “Clearly it’s been fairly laborious to boost on this in market setting, placing it bluntly. However we’re doing one thing totally different.”

“We’ve raised our flagship fund for deeptech and that’s the place we make investments day-after-day, in actually, actually deep tech. These deep tech lecturers really like us to come back all through, like we’ve completed with Thought Machine, like we’ve completed with Speechmatics. However yeah, it’s been an attention-grabbing funding setting.”

Given the massive debate occurring round Generative AI, I requested her if Europe goes to have the ability to compete with the key Huge Tech platforms on that entrance.

“We’ve bought distinctive expertise in Europe. Generative AI has bought a protracted option to go, however it’s not going to resolve actual world issues simply but,” she stated.

There’s been criticisms of how College spinouts are hampered by their Alma Maters. What’s her view?

She informed me: “That’s the place Cambridge College has been totally different and clearly our roots from Cambridge and in London, and throughout Europe. I believe it’s going to be attention-grabbing to see the outcomes of the UK Authorities assessment that’s popping out in early September on this.”