TECH

Cathay Capital Closes $1 Billion AI Fund, Largest of Its Kind in EU History

Published: May. 29, 2025 6:11 a.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

Mingpo Cai (left), founder and chairman of Cathay Capital and Cathay Innovation.

Cathay Innovation SAS has closed its third AI-focused venture fund at $1 billion after three years, marking the largest dedicated artificial intelligence fund in the European Union.

The fund aims to accelerate industry-specific applications across healthcare, fintech, mobility and energy in China, Southeast Asia, Europe and North America.

The private equity firm said the fund is backed by a powerhouse lineup of corporate investors, including Sanofi, TotalEnergies, Valeo, BNP Paribas Cardif, Groupe SEB, Groupe ADP, Vale, and Wind Ventures, the investment arm of Chilean conglomerate Copec.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

Cathay Innovation closed its third AI-focused fund at $1 billion, the largest AI-only fund in the EU, targeting industry applications in healthcare, fintech, mobility, and energy globally.
The fund focuses on embedding AI into industry operations, backing early- to growth-stage companies with $5–$80 million investments; 15 companies funded so far.
Cathay Innovation manages over €2.5 billion, its earlier funds backed 19 unicorns, and Cathay Capital’s total assets exceed $6 billion across 23 funds.

AI generated, for reference only

Who’s Who

Cathay Innovation SAS: Cathay Innovation SAS is a multistage venture capital firm affiliated with Cathay Capital, managing over €2.5 billion in assets. It recently closed its third AI-focused fund at $1 billion, the largest in the EU, targeting industry-specific AI applications globally. The firm emphasizes collaboration with major corporates and has invested in 15 companies so far, supporting early- to growth-stage startups, and is known for strong returns from its earlier funds.

Sanofi: Sanofi is one of the major corporate investors backing Cathay Innovation SAS’s third AI-focused venture fund. Additionally, Sanofi is collaborating with Cathay-backed companies such as Owkin, Aqemia, and Inato to integrate AI into drug discovery and clinical trials, emphasizing industry partnerships and the practical application of artificial intelligence in healthcare.

TotalEnergies: According to the article, TotalEnergies is one of the corporate investors backing Cathay Innovation’s third AI-focused venture fund. The fund, closed at $1 billion, aims to accelerate AI applications across various industries globally, including energy, where TotalEnergies operates.

Valeo: According to the article, Valeo is one of the prominent corporate investors backing Cathay Innovation SAS’s third AI-focused venture fund. The fund is dedicated to accelerating industry-specific AI applications globally, including sectors such as healthcare, fintech, mobility, and energy. Valeo’s involvement reflects its commitment to supporting innovation and digital transformation through strategic partnerships in the artificial intelligence sector.

BNP Paribas Cardif: BNP Paribas Cardif is listed in the article as one of the prominent corporate investors backing Cathay Innovation SAS’s third AI-focused venture fund. The firm is a leading global insurance provider and part of the BNP Paribas Group, supporting industry-specific AI innovation through its investment in the fund.

Groupe SEB: Groupe SEB is one of the corporate investors backing Cathay Innovation SAS’s third AI-focused venture fund. The company is known for its involvement in the fund, which targets industry-specific AI applications. No additional details about Groupe SEB’s business activities or sector are given in the article.

Groupe ADP: Groupe ADP is listed as one of the major corporate investors backing Cathay Innovation SAS’s third AI-focused venture fund, which closed at $1 billion. Groupe ADP is known for managing airports and is part of the powerhouse lineup supporting the fund’s mission to drive AI adoption across industries like healthcare, fintech, mobility, and energy globally.

Vale: According to the article, Vale is one of the corporate investors backing Cathay Innovation SAS’s third AI-focused venture fund. The fund targets AI applications across various industries globally, and Vale's participation highlights its interest in advancing artificial intelligence solutions within its sector. No further details about Vale are given in the article.

Wind Ventures: Wind Ventures is the investment arm of Chilean conglomerate Copec. It is one of the corporate investors backing Cathay Innovation SAS's third AI-focused venture fund, which recently closed at $1 billion.

Copec: Copec is a Chilean conglomerate, and its investment arm, Wind Ventures, is one of the corporate investors backing Cathay Innovation SAS’s third AI-focused venture fund.

Galaxea AI: Galaxea AI is a Chinese embodied AI startup that has received funding from Cathay Innovation’s third AI-focused venture fund. It is among the 15 companies backed so far by the fund, which targets industry-specific AI applications and prioritizes early- to growth-stage companies.

Mogic AI: Mogic AI is an AI-powered marketing platform that has received funding from Cathay Innovation SAS's third venture fund. The fund, which closed at $1 billion, targets industry-specific AI solutions, and Mogic AI is one of 15 companies supported so far.

Xingmai Innovation: Xingmai Innovation is a company backed by Cathay Innovation Fund III and is noted for making pool-cleaning robots. It is one of the 15 companies that have received investment from Cathay's latest AI-focused venture fund, which supports startups embedding AI in industry operations.

Owkin: Owkin is a company backed by Cathay Innovation that collaborates with Sanofi to apply AI to drug discovery and clinical trials. It is part of Cathay Innovation’s strategy to blend capital with industry partnerships, demonstrating the fund’s focus on accelerating industry-specific AI applications, particularly in the healthcare sector.

Aqemia: Aqemia is one of the AI-focused portfolio companies backed by Cathay Innovation. It is involved in collaborations with Sanofi to apply artificial intelligence to drug discovery and clinical trials, demonstrating the fund’s strategy of combining capital investment with industry partnerships to accelerate innovation in healthcare.

Inato: Inato is a company backed by Cathay Innovation and works with Sanofi to integrate AI into drug discovery and clinical trials. The collaboration reflects Cathay Innovation's strategy of fostering partnerships between its portfolio companies and major corporations to accelerate industry-specific AI applications, particularly in the healthcare sector.

Cathay Capital: Cathay Capital, founded in 2006 by Mingpo Cai and Edouard Moinet, was the first independent Franco-Chinese private equity firm approved by France’s AMF. It manages over $6 billion across 23 funds and holds a portfolio of more than 230 companies.

Pinduoduo: Pinduoduo is listed as one of the 19 unicorns backed by Cathay Innovation’s earlier funds. The company benefitted from investment through Cathay Innovation's venture capital, which launched funds in 2015 and 2018 to support high-growth startups.

Momenta: According to the article, Momenta is one of the 19 unicorns backed by Cathay Innovation’s earlier funds.

Tungee: According to the article, Tungee is one of the 19 unicorns backed by Cathay Innovation’s earlier venture funds, launched in 2015 and 2018.

ByteDance: ByteDance is referenced in the article as a major competitor in China’s foundational AI model space. The article states that most Chinese AI startups cannot outspend ByteDance in the costly “resource war” of training foundational models, highlighting ByteDance’s significant financial and technological capabilities in artificial intelligence development.

AI generated, for reference only

What Happened When

2015：: Cathay Innovation’s first fund was launched.

2018：: Cathay Innovation’s second fund was launched.

2022：: Cathay Innovation’s third AI-focused venture fund was launched.

2022–2025：: Cathay Innovation SAS worked for three years to close its third AI-focused venture fund.

2025：: Cathay Innovation SAS closed its third AI-focused venture fund at $1 billion, marking the largest dedicated artificial intelligence fund in the European Union.