Mundi Ventures Announces Closure of €750M for Kembara Fund I
Mundi Ventures has recently closed €750 million for its Kembara Fund I, officially positioning itself as one of the largest deep tech and climate-focused investment funds in Europe. This landmark moment comes at a crucial time, as the firm sets out to address what co-founder Yann de Vries identifies as Europe’s significant “scale-up problem,” where promising startups struggle to secure the capital needed for growth beyond initial funding rounds.
The Scale-Up Problem in Europe
Europe boasts a vibrant deep tech ecosystem filled with groundbreaking innovations, primarily emerging from universities and research institutions. However, the passage from early-stage investment to scaling up remains fraught with challenges. “Europe doesn’t have an innovation problem. It doesn’t have a startup problem. The problem it has is a scale-up problem,” de Vries states. This sentiment reflects an emerging consensus around the need for strong financial backing during critical growth phases.
Financial Backing and Goals
With support from the European Investment Fund, the Kembara Fund aims to reach a potential final close of €1.25 billion. This strategy shows a commitment to providing significant financial resources that can break the cycle of promising technologies failing to scale. The fund is focusing on Series B and C investments, which typically see less financial attention compared to earlier rounds.
Target Sectors of the Fund
Kembara Fund I is particularly interested in sectors that have become increasingly vital amid geopolitical tensions and a growing emphasis on European technological sovereignty. These sectors include quantum computing, semiconductors, defense technology, and spacetech—fields poised to reshape industries and national economies in the coming years.
Investment Strategy
The fund plans to make initial investments ranging from €15 million to €40 million in approximately 20 companies. This allows for a robust follow-on investment capacity, which can reach as high as €100 million per portfolio company. This approach highlights the fund’s resolve to not only invest but also to ensure that the companies scale effectively.
Lessons from Lilium
Yann de Vries’ experience as a former partner at Atomico and an executive at Lilium has profoundly influenced the fund’s strategy. Lilium, known for its electric aircraft ambitions, experienced a downfall after raising substantial funds. De Vries’ “traumatizing experience” at Lilium was instrumental in shaping Kembara’s investment thesis and the acknowledgement that growth capital is critical for the survival of ambitious tech companies in Europe.
Emerging Trends in the Deep Tech Landscape
The landscape for deep tech investment in Europe is evolving. While Kembara’s substantial checks may set a new standard, other players in the market are also increasing their funding sizes. For instance, Elaia recently partnered with Lazard to create a fund capable of making similar sized investments, indicating a broader shift towards larger capital commitments in the deep tech sector.
The Bright Future Ahead
Kembara Fund I stands as a testament to the high-stakes game of venture capital in Europe. It underscores a recognition of the essential role that deep tech plays in European competitiveness and innovation. With companies poised to redefine technological frontiers, access to significant funding could be the key element for success.
Through Kembara’s strategic focus and robust financial backing, Mundi Ventures is attempting to alter the traditional investment conversation in Europe, aiming not merely to support innovative startups but empower them to grow and scale sustainably.