Daphni Secures €200M for New Fund, Eyes €250M Target
French VC Firm Daphni Announces First Closing of Daphni Blue
French venture capital firm Daphni has officially closed the first round of its latest investment fund, Daphni Blue. The firm has successfully raised €200 million (approximately $215 million based on current exchange rates) and aims to reach a final total of €250 million ($270 million) by the end of the year.
A Proven Track Record in European Startups
Since its founding in 2015, Daphni has backed 70 European startups, with notable investments in Back Market, Swile, Hubcycle, and Pasqal. With the new fund, the firm plans to support an additional 40 startups, continuing its strong presence in the European venture ecosystem.
Key Investors Behind Daphni Blue
Several major financial institutions and investment firms have contributed to the Daphni Blue fund. Among them are Crédit Mutuel Arkéa, Bpifrance, the European Investment Fund, PRO BTP, and Swen Capital Partners. These limited partners bring strong financial backing and credibility to the fund’s investment strategy.
A Strategic Approach to Sustainable and Differentiated Investments
Daphni is focused on identifying sustainable and innovative technologies that stand out in the market. “We need to ask ourselves how we can both differentiate ourselves and support technologies or services that are sustainable when we invest in new projects,” said Pierre-Eric Leibovici, a founding partner at Daphni.
He further emphasized the cyclical nature of the market, explaining that some industries consolidate over time, while others become dominated by American firms or fail to produce significant breakthroughs.
Science-Driven Innovation Takes Center Stage
Unlike many venture capital firms that prioritize artificial intelligence, Daphni is focusing on broader scientific disciplines as the driving force behind the next wave of innovation. The firm is particularly interested in life sciences, biology, physics, chemistry, and mathematics.
“When you talk about quantum computing, well, quantum computing is fundamental physics combined with hardware and software,” Leibovici stated. He also pointed out that large language models originate from mathematical breakthroughs.
Expanding the Investment Team with Scientific Expertise
To align with this focus on scientific advancements, Daphni has been expanding its investment team to include professionals with deep technical expertise. The firm has already brought in a PhD graduate and a PhD student to strengthen its analytical capabilities when evaluating potential investments.
Leibovici noted a growing trend among researchers to commercialize their fundamental and applied research, a shift that has created new opportunities for venture capital. “The new generation of researchers are much more open to commercializing their fundamental and applied research because they see all their friends around them starting companies,” he explained.
Open to Collaborations with American Researchers in Europe
While some French universities have begun setting aside funds to attract American researchers, Daphni’s renewed focus on fundamental science was not driven by this trend. “It’s a coincidence. We launched this long before there was this trend,” Leibovici clarified. However, the firm remains open to investing in American researchers who are establishing startups in Europe.
The Next Step: Deploying Capital Effectively
With the first round of funding secured, Daphni now faces the challenge of deploying capital effectively and proving the success of its investment strategy. “Raising is not an end in itself. What is an end in itself is distributing returns, and therefore exits,” Leibovici stated.
As Daphni moves forward, all eyes will be on how the firm selects and supports startups that can deliver strong returns while pushing the boundaries of innovation in Europe.
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