Introduction to Daphni’s New Fund
French venture capital firm, Daphni, has announced the initial closing of its newest fund, Daphni Blue, with a raise of €200 million, equivalent to approximately $215 million at current exchange rates. The firm anticipates further investment, potentially reaching €250 million ($270 million) by the end of the year.
## Past Investments and Future Plans
Daphni has an impressive portfolio, with notable investments in companies such as Back Market, Swile, Hubcycle, and Pasqal. Since its inception in 2015, the firm has invested in 70 European startups. With Daphni Blue, the firm plans to expand its portfolio by investing in an additional 40 startups.
## Investors and Objectives
The limited partners in Daphni Blue include prominent institutions such as Crédit Mutuel Arkéa, Bpifrance, the European Investment Fund, PRO BTP, and Swen Capital Partners. According to founding partner Pierre-Eric Leibovici, the firm’s strategy is built around differentiation and support for sustainable technologies and services.
## Focus on Science and Innovation
Leibovici emphasized the need to focus on fundamental sciences as the driving force behind the next wave of innovation, highlighting fields such as life sciences, biology, physics, chemistry, and mathematics. Unlike many VC firms that center their discussions around artificial intelligence, Daphni seeks to emphasize the broader spectrum of scientific disciplines.
## Application of Science in Technology
Leibovici illustrated this point by mentioning that quantum computing is essentially an application of fundamental physics combined with hardware and software, and that large language models are rooted in mathematical breakthroughs. This perspective underscores Daphni’s commitment to investing in projects with deep scientific foundations.
## Team Expansion and New Trends
To execute its strategy, Daphni is expanding its team to include diverse profiles, such as PhD graduates and students. Leibovici noted a new trend where the latest generation of researchers is more inclined to commercialize their research findings, driven in part by the entrepreneurial spirit among their peers.
## Independence of Strategy
While French universities are allocating funds to attract American researchers, Daphni’s shift towards fundamental science was not a response to this trend, according to Leibovici. The firm remains open to investing in startups founded by American researchers setting up operations in Europe.
## Future Outlook
The next challenge for Daphni will be to deploy its newly raised capital effectively and demonstrate the efficacy of its investment strategy. Leibovici underscored that the ultimate goal is not merely to raise funds but to generate returns through successful exits, underscoring the firm’s commitment to creating lasting value in the startups it supports.
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