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 belongings beneath 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 supply later-stage funding, primarily in its enterprise portfolio. The means the VC will be capable of deploy capital throughout extra funding phases.

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

Buyers in Fund IV embody international establishments, funds-of-funds, household places of work, and British Affected person Capital, the most important 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 arduous to boost the fund on this market: “Clearly it’s been fairly arduous to boost on this in market setting, placing it bluntly. However we’re doing one thing completely different.”

“We’ve raised our flagship fund for deeptech and that’s the place we make investments each day, in actually, actually deep tech. These deep tech lecturers really like us to return right through, like we’ve executed with Thought Machine, like we’ve executed with Speechmatics. However yeah, it’s been an fascinating funding setting.”

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

“We’ve received distinctive expertise in Europe. Generative AI has received an extended strategy to go, however it’s not going to unravel 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 instructed me: “That’s the place Cambridge College has been completely different and clearly our roots from Cambridge and in London, and throughout Europe. I believe it’s going to be fascinating to see the outcomes of the UK Authorities evaluation that’s popping out in early September on this.”