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London-based VC IQ Capital announces $400M fund to back deep tech AI and robotic startups

IQ Capital team
Photo credits: IQ Capital

IQ Capital, a prominent venture investor based in London which has invested in successful UK startups including Signaloid, Thought Machine, Apperio and Accelercomm has now announced to have secured $400 million across two funds. The VC firm aims to strengthen its investments in ‘deep-tech’ startups, with a particular focus on transformative areas such as artificial intelligence (AI) and robotics.

Split funding for growth and venture funds

The newly raised funds consist of a $200 million growth fund dedicated to supporting later-stage companies, as well as a fourth $200 million venture fund targeting early-stage ventures. This strategic allocation will allow IQ Capital to cater to startups at various stages of development, providing crucial funding to fuel their growth and innovation.

Also with this latest fund, IQ Capital’s total assets under management surpass $1 billion, solidifying its position as a major player in the deep tech investment landscape.

Continued focus on IP-rich breakthrough technologies

IQ Capital remains dedicated to investing in UK and European startups at the Seed and Series A stages. The firm’s focus lies in commercialising breakthrough technologies rich in intellectual property (IP) and supporting founders with ambitions for global scaling. The investments made by IQ Capital in these pioneering ventures contribute to the overall growth and development of the deep tech ecosystem.

Impressive investor lineup

Fund IV has attracted a diverse range of investors, including global institutions, funds-of-funds, family offices, corporates, and tech entrepreneurs. Many of these investors have previously been supported by IQ Capital, highlighting the firm’s reputation and track record. Notably, British Patient Capital, the largest LP investing in UK venture capital, has also participated in Fund IV.

Strategic investments already made

Further, IQ Capital’s fourth fund, Fund IV, has already made significant investments in cutting-edge deep-tech startups. These include DreamFold, a company utilising Generative AI algorithms to predict the properties of therapeutic proteins. Additionally, Cambridge-based Risilience, a climate-risk platform empowering multinational corporates to achieve their net-zero objectives, has secured an additional $26 million in funding. Furthermore, Fund IV has backed London-based Secretarium, a confidential computing startup, revolutionising cloud computing infrastructure through advanced cryptography using standard hardware components.

Deep tech’s impact on global innovation

Kerry Baldwin, co-founder and Managing Partner of IQ Capital, emphasised the pivotal role of deep tech in driving innovation and global impact. With deep tech investments exceeding $17 billion in 2022, the UK and Europe remain at the forefront of pioneering technological advancements. IQ Capital’s focus on IP-rich technologies that can dominate global markets positions the firm to capitalise on this growing trend.

She said, “Deep tech will play a pivotal role as both the UK and Europe continue to lead the way in developing technology that will have a lasting global impact. IQ Capital backs IP-rich technologies with the potential to dominate massive global markets, at a time when deep tech investment is at the forefront of investor’s minds, topping $17bn in 2022.”

Building a diversified investment portfolio

Since its establishment in 2007, IQ Capital has invested in over 100 deep tech startups, attracting an additional $1.4 billion in follow-on capital to its portfolio. The firm’s investments have contributed to the creation of over 4,000 high-quality deep tech jobs, further solidifying its position as a driving force in the industry.

IQ Capital’s existing funds have achieved significant success, with notable exits to industry giants such as Oracle, Google, Apple, and Facebook, along with several high-profile IPOs.

Max Bautin, co-founder, Managing Partner and board member of Invest Europe commented: “The world has seen many examples of the transformative impact that deep tech can create to achieve vital improvements in all spheres of life and help address some of the biggest challenges facing humanity. Breakthroughs in “novel AI” models, new energy & climate, robotics and space-tech, quantum computing, synthetic biology – all demonstrate what a significant opportunity deep tech now presents.”

Paul Taylor, founder of Thought Machine, said: “At Thought Machine, we are delighted to see IQ Capital closing their fourth fund. IQ Capital has been central to Thought Machine’s success. They invested $2.5m at Seed stage, following on with another $50m through our growth stages as we expanded globally. IQ Capital provided much more: their experience in every aspect of deep tech development and commercialisation is unrivalled and they fully stand behind founders through good times and bad. We rightly regard IQ Capital as a partner for our whole journey. I was so impressed with IQ Capital that I personally invested in the fund and I always enjoy seeing the breadth and depth of the companies IQ Capital supports. I very much hope fund 4 is another stepping stone to IQ Capital, the UK’s and Europe’s growing deep tech success story.”

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