As Deeptech and AI explodes, European Deeptech VC IQ Capital closes new $200M fund

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European Deeptech startups get one other shot within the arm this week within the form of IQ Capital’s new $200m enterprise fund. The brand new fund takes its property underneath administration to greater than $1bn. 
The London and Cambridge, UK-based deep tech VC has closed its fourth Enterprise Fund at that quantity, whereas additionally launching its second $200m Progress Fund to offer later-stage funding, primarily in its enterprise portfolio. The means the VC will be capable of deploy capital throughout extra funding levels.
Since its basis in Cambridge in 2007, IQ Capital has invested in over 100 deep tech startups corresponding to Thought Machine (banking), Nyobolt (battery charging) and Speechmatics (speech recognition). It’s additionally had exits to Oracle, Google, Apple and Fb, together with a variety of IPOs.
Traders in Fund IV embody international establishments, funds-of-funds, household workplaces, and British Affected person Capital, the biggest LP investing in UK enterprise capital. 
Kerry Baldwin, co-founder, Managing Associate mentioned deep tech funding was “on the forefront of investor’s minds, topping $17bn in 2022.”
I requested her if it had been arduous to boost the fund on this market: “Clearly it’s been fairly arduous to boost on this in market surroundings, placing it bluntly. However we’re doing one thing completely different.”
“We’ve raised our flagship fund for deeptech and that’s the place we make investments daily, in actually, actually deep tech. These deep tech lecturers truly like us to return throughout, like we’ve finished with Thought Machine, like we’ve finished with Speechmatics. However yeah, it’s been an fascinating funding surroundings.”
Given the massive debate occurring round Generative AI, I requested her if Europe goes to have the ability to compete with the foremost Large Tech platforms on that entrance.
“We’ve obtained distinctive expertise in Europe. Generative AI has obtained an extended method to go, however it’s not going to unravel actual world issues simply but,” she mentioned.
There’s been criticisms of how College spinouts are hampered by their Alma Maters. What’s her view?
She advised me: “That’s the place Cambridge College has been completely different and clearly our roots from Cambridge and in London, and throughout Europe. I feel it’s going to be fascinating to see the outcomes of the UK Authorities overview that’s popping out in early September on this.”

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