French VC agency Daphni is saying the primary closing of its new fund, Daphni Blue. The agency has raised €200 million (round $215 million at present alternate charges). It expects to lift as a lot as €250 million ($270 million) by the tip of the yr.
A few of Daphni’s most exceptional previous investments embody Again Market, Swile, Hubcycle and Pasqal. Total, the agency has invested in 70 European startups since 2015.
With its newest fund, Daphni plans to spend money on one other 40 startups. Restricted companions in Daphni Blue embody Crédit Mutuel Arkéa, Bpifrance, the European Funding Fund, PRO BTP and Swen Capital Companions.
“We have to ask ourselves how we will each differentiate ourselves, and assist applied sciences or companies which can be sustainable once we spend money on new tasks,” founding accomplice Pierre-Eric Leibovici instructed me.
“As a result of on the finish of the day, there are cycles, and we will see that at a given second, both the market consolidates, or it’s dominated by American gamers, or ultimately, there wasn’t sufficient of a breakthrough to start with.”
Whereas most VC companies point out synthetic intelligence in each different sentence, Daphni needs to place an emphasis on science (at giant) as the primary issue for the subsequent wave of innovation: life sciences, biology, physics, chemistry and arithmetic.
“Whenever you discuss quantum computing, effectively, quantum computing is prime physics mixed with {hardware} and software program,” Leibovici mentioned. He additionally mentioned that enormous language fashions are arithmetic breakthroughs in the beginning.
Because of this, Daphni is recruiting totally different profiles to hitch the workforce. As an illustration, a PhD graduate and a PhD pupil are on the funding workforce.
“There’s one other aspect that could be a new development. The brand new technology of researchers are far more open to commercializing their elementary and utilized analysis, as a result of they see all their pals round them beginning corporations,” Leibovici mentioned.
Whereas French universities are setting aside a portion of their finances to draw American researchers, Daphni says that it didn’t select to refocus on elementary science due to that.
“It’s a coincidence. We launched this lengthy earlier than there was this development,” Leibovici mentioned. After all, Daphni is open to investing in American researchers who’re beginning a startup in Europe.
Up subsequent, Daphni must deploy this newly raised capital and show that it has discovered an environment friendly funding technique. “Elevating is just not an finish in itself. What’s an finish in itself is distributing returns, and subsequently exits,” Leibovici mentioned.