Kembara Closes €750M Deep Tech Fund

A significant capital infusion is set to bolster Europe's advanced technology sector, with Kembara announcing a substantial €750 million first close for its dedicated deep tech and climate fund. This marks the largest such fund in Europe, aiming for a total of €1 billion to actively invest in groundbreaking science and engineering ventures. The initiative is spearheaded by a seasoned partnership boasting over a century of collective experience in deep tech investments, drawing from prominent firms including Atomico, IP Group, Khazanah, Promus Ventures, and Mundi Ventures. This collective effort addresses a critical gap in funding for European deep tech companies, which, despite contributing 28% of global innovations, struggle to secure later-stage growth capital.

The fund's launch arrives at a pivotal moment for the continent. Deep technology is increasingly recognized as the engine for solving complex global challenges, moving beyond software-centric solutions. In an era of geopolitical shifts, companies achieving strategic autonomy in critical fields like artificial intelligence, quantum computing, space systems, and clean energy are positioned for immense growth. The European Investment Fund (EIF) has committed a substantial €350 million, anchoring the fund alongside other top-tier investors, signaling strong confidence in Europe's deep tech potential. Kembara aims to build a premier European deep tech platform, preventing promising innovations from being prematurely acquired or relocating.

Javier Santiso, Founder and General Partner of Kembara and CEO of Mundi Ventures, likened the current era to a “second Renaissance” for Europe. He emphasized the need for substantial, local growth-stage capital to support the continent's deep tech pioneers, drawing a parallel to the historical patronage of innovation. With €750 million already secured, Kembara is actively seeking to empower ambitious founders driving transformative change through advanced technology.

The timing of this fundraise is driven by both necessity and opportunity. Deep tech now accounts for 28% of all venture capital investment in Europe. However, the majority of existing deep tech funds are below €300 million, often insufficient for the significant capital requirements of Series B and C rounds, typically ranging from €50 million to €100 million. Companies that successfully navigate these scaling challenges demonstrate remarkable resilience and rapid growth, achieving unicorn status significantly faster and exhibiting stronger downside protection due to proprietary intellectual property and strategic national importance.

Kembara will focus its investments on scalable technologies addressing pressing global issues, including climate change and resilient infrastructure. The fund targets Series B and C rounds, with initial investments ranging from €15 million to €40 million, and potential follow-on capital up to €100 million per company. The portfolio is expected to comprise approximately 20 companies, with an average investment size of €40 million. Key sectors of interest include applied AI, quantum computing, advanced semiconductors, robotics and automation, clean energy solutions, space technology, advanced materials, and dual-use/defense technologies crucial for European sovereignty.

This strategic deployment of capital aims to cultivate a robust European deep tech ecosystem. By providing growth-stage funding, Kembara seeks to ensure that European innovations mature into global leaders, contributing to economic growth and technological independence. The fund's focus on capital-intensive, science-driven ventures underscores a commitment to long-term value creation and addressing fundamental societal needs through technological advancement.