Cathay Innovation has closed its third fund at $1 billion, doubling down on its vision to fund the future of AI startups. The global firm, which operates from both Paris and San Francisco, now manages one of the largest AI-focused funds in the EU.
This latest fund will fuel startups using artificial intelligence in specific industries like digital health, fintech, energy, mobility, and consumer tech. These aren’t generic AI tools. Instead, Cathay is looking for solutions that go deep into each sector’s unique needs — also known as vertical AI.
Targeting Growth-Stage AI Companies Globally
Since launching Fund III in mid-2022, Cathay has invested in 14 startups across Europe, Asia, and North America. The fund focuses on Series A and B rounds, as well as select later-stage deals. Check sizes range between $5 million and $100 million. The firm either leads or co-invests, depending on the opportunity.
This marks a continuation of Cathay’s core strategy since its founding in 2015. Originally launched as the venture arm of Cathay Capital, the firm has consistently bet on long-term AI innovation — well before the current hype cycle.
Portfolio Highlights: AI Driving Real-World Change
Several notable companies have already received funding through Fund III:
- Bioptimus, a French biotech company building AI foundation models for medical research. Cathay led its $41 million Series A.
- Flowdesk, a crypto trading infrastructure startup that raised nearly $92 million.
- Nabla, which offers an AI assistant to help doctors save time and focus more on patients.
- Aqemia, an AI-powered drug discovery platform using simulation to speed up molecule design.
- Range, providing AI-driven tools for modern wealth management.
- Ping++, which builds open banking and payment rails across regions.
- Ghost, a B2B marketplace helping brands sell surplus inventory efficiently.
- Reebelo, a refurbished tech marketplace focused on affordable, sustainable electronics.
- Entalpic, developing low-carbon materials through AI-based scientific discovery.
- Mogic, using generative AI to create marketing videos automatically.
- Beatbot, building intelligent cleaning robots for commercial use.
Each of these companies applies AI not just broadly, but in deeply focused ways within their industries.
Cathay’s Long-Term Vision for AI Innovation
Despite market ups and downs, Cathay’s leadership remains bullish. Founder Mingpo Cai explained that while economic conditions may shift, the AI-driven transformation of industries is only gaining momentum.
He emphasized the firm’s broader goal: supporting local champions while fostering ecosystems that create lasting economic and social impact.
With this $1B fund, Cathay Innovation is well-positioned to keep identifying and funding the next wave of AI startups reshaping the way the world works.
