Europe unveils record €750M fund to scale hot deeptech startups

Kembara, a Spanish deeptech investment fund, announced a €750 million first close, claiming to have become the largest of its kind in Europe. The fund, managed by venture capital firm Mundi Ventures, aims to help address the scale-up challenge faced by companies developing technologies such as AI, quantum computing, clean energy, and space tech.

Kembara aims to foster the next generation of European deeptech champions. Deeptech companies base their innovation on fundamental scientific research and require substantial time and capital to test their technologies and enter the market. The Spanish fund plans to invest in approximately 20 such companies, particularly those developing scalable technologies to address critical global challenges, such as climate change and infrastructure resilience.

"Europe is at the beginning of a second Renaissance," said Kembara Founder and General Partner Javier Santiso, CEO and Founder of Mundi Ventures, and former member of the executive and investment committees of the then $50B AUM Malaysian sovereign wealth fund Khazanah. "While the original had the Medici family to fund innovation, similarly, Europe's deeptech champions today also need significant local growth-stage capital at scale. Kembara's mission is to catalyse this second Renaissance and, with €750M already committed, we're now backing Europe's most ambitious deeptech founders leading this change.”

Scaling European deeptech

Kembara's investment strategy centers on leading or co-leading Series B and C rounds, with initial investments ranging from €15 million to €40 million. The fund reserves capital for follow-on investments, potentially bringing the total investment in a single company up to €100 million. The team managing Kembara operates from offices in Madrid, London, Barcelona, and Paris. Key figures include co-founders Yann de Vries and Javier Santiso, along with veteran investors Robert Trezona, Pierre Festal, and senior strategic advisor Siraj Khaliq. With over 100 years of combined deeptech investment experience, the team brings expertise from firms like Atomico, IP Group, and Mundi Ventures.

According to the company, deeptech now represents 28% of all European venture investment. However, nearly all (97%) of deeptech funds remain below €300 million, which is insufficient to support the growth of such capital-intensive companies.

The fund, founded in 2024, secured a €350 million from the European Investment Fund (EIF), and is now adding €400 million from other investors. This milestone was achieved despite a challenging fundraising environment, as noted by Kembara co-founder Yann de Vries. According to figures reported on the Spanish regulatory filing, the fund could reach its final closing at €1.25 billion.