French venture capital firm Daphni has successfully closed its new fund, Daphni Blue, with an initial raise of €200 million (approximately $215 million). The firm aims to reach a total of €250 million ($270 million) by year-end.
Investment Focus and Strategy
Daphni plans to invest in around 40 startups with this fund, continuing its mission of supporting European innovation. The firm has previously backed notable companies like Back Market, Swile, Hubcycle, and Pasqal, investing in a total of 70 European startups since its inception in 2015.
Limited Partners
The limited partners contributing to Daphni Blue include Crédit Mutuel Arkéa, Bpifrance, the European Investment Fund, PRO BTP, and Swen Capital Partners.
Emphasis on Science
While many venture capital firms focus heavily on artificial intelligence, Daphni aims to prioritize broader scientific fields. Founding partner Pierre-Eric Leibovici emphasizes the importance of life sciences, biology, physics, chemistry, and mathematics, outlining that quantum computing integrates fundamental physics with advanced hardware and software. He also views large language models as primarily mathematical advancements.
Team Recruitment and Trends
To align with its scientific focus, Daphni is expanding its team, notably bringing in individuals with advanced academic backgrounds, including PhD graduates and current PhD students. This recruitment approach reflects a new trend where younger researchers are more inclined to commercialize their research, inspired by peers launching startups.
Independence from External Trends
Daphni clarifies that its renewed focus on fundamental science is not a reaction to French universities’ initiatives to attract American researchers. Leibovici notes that this shift was initiated independently of any external movements, although the firm remains open to investing in American entrepreneurs establishing startups in Europe.
Future Goals
With the capital raised, Daphni’s next step is to deploy these funds effectively and demonstrate a successful investment strategy. Leibovici reminds stakeholders that fundraising is merely a means to an end, highlighting that delivering returns and achieving successful exits is the ultimate goal.