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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.
Geopolitical considerations are also driving support for European growth-stage startups, with predictions of increased backing from sovereign wealth funds, governments, and corporations. Kembara's sector focus includes dual-use and defense tech to enhance European sovereignty, aiming to nurture global champions from the continent.
