French VC agency Daphni is asserting the primary closing of its new fund, Daphni Blue. The agency has raised €200 million (round $215 million at present change 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 embrace Again Market, Swile, Hubcycle and Pasqal. General, the agency has invested in 70 European startups since 2015.
With its newest fund, Daphni plans to put money into one other 40 startups. Restricted companions in Daphni Blue embrace Crédit Mutuel Arkéa, Bpifrance, the European Funding Fund, PRO BTP and Swen Capital Companions.
“We have to ask ourselves how we are able to each differentiate ourselves, and help applied sciences or providers which might be sustainable once we put money into new tasks,” founding associate Pierre-Eric Leibovici advised me.
“As a result of on the finish of the day, there are cycles, and we are able to see that at a given second, both the market consolidates, or it’s dominated by American gamers, or in the long run, there wasn’t sufficient of a breakthrough to start with.”
Whereas most VC corporations point out synthetic intelligence in each different sentence, Daphni needs to place an emphasis on science (at massive) as the principle issue for the following wave of innovation: life sciences, biology, physics, chemistry and arithmetic.
“Once you discuss quantum computing, properly, quantum computing is key physics mixed with {hardware} and software program,” Leibovici mentioned. He additionally mentioned that giant language fashions are arithmetic breakthroughs initially.
Because of this, Daphni is recruiting completely 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 ingredient that may be a new development. The brand new technology of researchers are way more open to commercializing their elementary and utilized analysis, as a result of they see all their associates round them beginning firms,” Leibovici mentioned.
Whereas French universities are setting apart a portion of their funds 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. In fact, Daphni is open to investing in American researchers who’re beginning a startup in Europe.
Up subsequent, Daphni should deploy this newly raised capital and show that it has discovered an environment friendly funding technique. “Elevating shouldn’t be an finish in itself. What’s an finish in itself is distributing returns, and due to this fact exits,” Leibovici mentioned.
