Cathay Innovation Raises $320 Million Inaugural Fund to Invest in Early Growth Technology Startups

The firm's $320 million venture capital fund represents one of the largest fundraisings ever in Europe for an inaugural venture fund

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Cathay Innovation

Jul 05, 2017, 09:00 ET

PARIS, July 5, 2017 /PRNewswire/ -- Cathay Innovation today announced the closing of its first investment vehicle for a total of $320 million, representing one of the largest fundraisings ever in Europe for an inaugural venture capital fund. The success of this fundraising can largely be explained by the unique approach proposed by Cathay Innovation and how this approach resonated among investors.

Cathay Innovation was effectively founded on the conviction that supporting digital entrepreneurs through a platform available on 3 continents — North America, Europe, and China — constitutes a particularly valuable strategy. By connecting these three major ecosystems and by relying on the platform constructed over the last 10 years by Cathay Capital Private Equity, Cathay Innovation provides mission- driven entrepreneurs both a global vision of the evolution of technologies and multi-continent operational support.

This unique model attracted well beyond the initially targeted size with investors of varying profiles. Besides the initial and decisive support of Bpifrance and CDB Capital, Cathay Innovation was also able to count on the support of numerous leading companies including BNP Paribas Cardif, Groupe ADP, Groupe Artemis, Groupe SEB, Joyoung, Michelin, Total, and Valeo.

"Working with these partners is an integral part of Cathay Innovation's approach as our strategic investors form a leading strategic committee that gathers on a regular basis to anticipate the impact of the digital revolution with a consistent global vision covering a multitude of industries. Combined with Cathay's international platform, this network of partners brings enormous added value to the companies we support such as facilitator of links, catalyst of opportunities, and provider of sector expertise," explains both Denis Barrier, Managing Partner and Co-founder of Cathay Innovation, and Mingpo Cai, President of Cathay Capital Private Equity and Co-founder of Cathay Innovation.

Cathay Innovation's team — which today comprises of 11 professionals spread between France, China, and the U.S. — has already closed more than 10 investments in the span of just 20 months. Cathay Innovation has also had the opportunity to contribute to the product launch and then the rise of its first unicorn, Pinduoduo (PDD), now already the largest social commerce platform on the planet and the fastest growing e-commerce merchant ever.

Cathay Innovation is committed to investing in 20 to 25 innovative companies in this fund, with initial commitments between $3 million and $15 million, and a strategy allowing portfolio companies to connect at the outset to a global ecosystem (Europe / China / USA) to accelerate their international growth.

Mingpo Cai concludes: "Connecting European, Chinese, and American start-ups with the whole world may look obvious. But this approach did not exist until now in the world of venture capital and meets a real need of digital entrepreneurs. The entrepreneurs must accelerate the diffusion of their innovations and quickly scale up globally. We are very grateful to our historical investors for having adhered to this vision and very pleased to welcome with this fund new partners in our ecosystem."

About Cathay Innovation

Cathay Innovation is a global venture capital fund, created in affiliation with Cathay Capital Private Equity. It was founded around the shared conviction that supporting digital entrepreneurs by providing them with a platform bridging 3 continents – North America, Europe and China – constitutes a particularly powerful value-creation strategy. As a multi-stage fund, Cathay Innovation partners with visionary entrepreneurs, committed to driving change through technology. Such transformation is accelerated by leveraging Cathay Capital Private Equity's extensive network with corporates and solid experience in operational excellence. Cathay Innovation has offices in San Francisco, Paris, Beijing and Shanghai. To learn more, please visit www.cathayinnovation.com.

About Cathay Capital

Cathay Capital Private Equity is a leading international private equity firm focused on cross-border investment and committed to supporting the international expansion of middle-market companies in North America, China and Europe. The firm's team of 60 professionals is based in New York, Shanghai, Beijing, Paris, Munich, and San Francisco and leverages its unique business model and platform to create value for companies across three continents. With $1.5 billion in assets under management, Cathay Capital Private Equity has completed over 60 buyouts and growth capital investments across three continents since its inception in 2007. Cathay Capital Private Equity invests in and assists middle-market companies in the consumer goods and services, healthcare, business services and technology industries. To learn more, please visit www.cathay.fr.