IQ Capital, a UK-based deep tech fund which has invested in startups resembling Paragraf, Senseye and Funderbeam, has launched a brand new $125 million ‘Progress Alternatives Fund’ and closed its third enterprise fund, IQ Capital Fund III, at $175 million. This brings the entire new capital to be invested to over $300 million. Nationwide Grid Companions have joined British Affected person Capital and various different world establishments, as an investor in IQ Capital Fund III.
The transfer is a part of a wider shift in VC investing throughout Europe in direction of so-called deep tech (AI, BioTech, Blockchain and so on).As an illustration, Adara Ventures, a spanish VC agency lately closed its third fund with commitments in extra of €65 million to again European early-stage deep tech startups.
IQ says the $125 million fund will present later-stage capital to the best-performing corporations of their current portfolio. The primary to learn from that is Privitar, a startup in knowledge privateness engineering which IQ Capital funded from seed stage, as a part of its $40 million Sequence B funding spherical introduced final month.
Alongside the launch of the brand new fund, IQ Capital has reached the ultimate closing for its third enterprise fund at $175 million, which focuses on investing into corporations at Seed and Sequence A stage. Within the final 12 months, IQ Capital has invested in 12 corporations, together with Causalens, Concirrus, and Iotic. Earlier Fund II startups embrace Thought Machine, Fluidic Analytics, Paragraf, and Speechmatics.
Max Bautin, Co-Founder and Accomplice at IQ Capital, stated a press release: “The companions, Ed Stacey, Kerry Baldwin, and I, have been investing in deep-tech for over 20 years, and through this time we’ve seen funding within the sector develop from tens of thousands and thousands p.a. to $1.75 billion deployed throughout Europe in 2018 alone. Half of this capital was invested into UK start-ups, reinforcing the UK as a pacesetter in Europe, with well-established expertise ecosystems shaped in Cambridge, Bristol, Oxford, and London.
“IQ Capital has grown its funds beneath administration over 10x within the final 5 years, following exits to Google, Apple, and Fb, and a double-dragon to Oracle. The funding workforce has tripled in dimension over the identical interval with current joiners Rick Hao, Daniel Carew and Marek Chalupnik. IQ Capital is now firmly established because the main deep tech investor within the UK.”
Lisa Lambert, Founder and President of Nationwide Grid Companions stated: “IQ Capital… is positioned because the go-to deep-tech fund within the EU, and the workforce has a confirmed skill to attach with founders by means of all phases, from seed to exit.”