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€750M Fund Targets Europe's Deep Tech Scale-Up Crisis
5 Feb
Summary
- New €750M fund aims to bridge Europe's deep tech scale-up funding gap.
- Kembara Fund I focuses on Series B and C rounds for deep tech startups.
- The fund will offer non-dilutive financing options to reduce founder dilution.
A significant funding gap in Europe's early-stage climate and deep tech sectors is hindering startup growth, with many ventures failing at the Series B stage. In response, Mundi Ventures has launched Kembara Fund I, its fifth and largest fund to date, with a first close of €750 million. This deep tech-focused fund could potentially reach €1.25 billion by its final close.
Managed by a specialist team across Madrid, London, Barcelona, and Paris, Kembara Fund I targets Series B and C rounds, planning initial investments of €15 million to €40 million into approximately 20 companies. The fund's substantial size allows for follow-on investments, potentially reaching up to €100 million per company to support manufacturing scale-up and global expansion.
A key innovation of Kembara is its commitment to productizing non-dilutive financing. This approach aims to help deep tech founders de-risk future funding rounds and optimize their capital structure, minimizing equity dilution. This strategy is inspired by past experiences where companies struggled to secure adequate growth capital.
