1 billion dollars - Cathay Innovation closes third mega fund

Cathay Innovation's "Fund III" invests specifically in AI start-ups from sectors such as healthcare, energy and finance. Investments are also being made in Germany.

Berlin, 27 May 2025 - The European venture capital landscape is set for a major growth spurt: Cathay Innovation has announced the closing of its third fund ("Fund III") of USD 1 billion, one of the largest dedicated AI funds in the European Union. The focus is on vertical AI solutions that will fundamentally transform industries such as healthcare, energy, finance and consumer goods.

Cathay is sending a clear signal to the market, having already invested over 235 million euros in 14 start-ups. Half of these are in Europe and the German fintech Nelly is also among the portfolio companies to date.

Focus on collaborative transformation between start-ups and industry

Cathay Innovation sees itself not only as an investor, but also as a bridge builder between up-and-coming start-ups and established companies. The fund uses a global platform to connect founders with strategic partners from the industry. Fund III's supporters include leading international companies such as Sanofi, TotalEnergies and BNP Paribas Cardif.

This platform strategy not only enables start-ups to scale faster, but also gives industry partners early access to AI innovations. A win-win situation in an increasingly technology-driven market environment.

Strategic focus on Europe's reindustrialization

Fund III demonstrates the power of value-creating capital in one of the most difficult phases of the VC industry.

Mingpo Cai, Founder and Chairman of Cathay Capital

The investments are designed to support the industrial transformation and reindustrialization of Europe, even against a backdrop of macroeconomic uncertainty. With offices in Berlin, Paris and other global locations, Cathay pursues a locally anchored, globally scalable investment approach. This approach makes it easier to transfer know-how and innovation potential between continents.

Investments in Series A to late stage

Cathay Innovation Fund III typically invests between 5 and 80 million US dollars per investment and acts as lead or co-lead investor. In addition to Europe, the investment focus is also on the USA and Asia. The investments range from digital health and fintech to energy and mobility. According to Cathay, one strategic advantage is the geographical diversity, which gives European start-ups access to markets such as Silicon Valley or Latin America. This also applies in the opposite direction.

Fund III is also classified as an Article 8 fund under the EU Disclosure Regulation, which underlines its commitment to sustainability. The philosophy: AI as a tool to improve the economy and society, not as a replacement for people.

Germany as a key market

Germany plays a central role for Cathay: with a strong industry, excellent research institutions and a growing AI ecosystem, Cathay sees great potential for vertical AI solutions "made in Germany". The investment in the Berlin fintech Nelly is part of this strategy and will not be the last.

AI is a universal technology that is fundamentally changing industries - Fund III combines European values with global reach and connects start-ups with industry partners to drive innovation and transformation - including in key countries such as Germany

Denis Barrier, co-founder of Cathay Innovation

Cathay Innovation is a global venture capital investor founded in Paris in 2015 and today has over €2.5 billion in assets under management. The company is invested in over 100 start-ups worldwide, including well-known names such as Chime, Pinduoduo, Ledger, Wallbox and Glovo. The aim is to work with industry partners to support transformative companies in key markets such as digital health, consumer goods, energy and finance.