Kembara Fund: €750M for European Deep Tech Growth

Europe’s deep tech ecosystem received a significant boost with Kembara Fund I reaching its first close at €750 million. The fund, managed by Spain-based Mundi Ventures, is targeting a final size of €1 billion and will focus on growth-stage companies developing breakthrough technologies across Europe.

Kembara will primarily invest in companies at the Series B and C funding stages, a critical juncture for deep tech startups that often struggle to secure the capital needed to scale. Initial investments are planned in the range of €15 million to €40 million per company, with the potential for follow-on funding up to €100 million. The fund’s investment scope includes areas like clean energy, artificial intelligence, quantum computing, advanced materials, robotics and space technology.

A cornerstone of this initial funding round is a €350 million commitment from the European Investment Fund (EIF). This investment, made under the European Tech Champions Initiative (ETCI), underscores the EU’s commitment to strengthening local growth capital and fostering innovation within the region. The ETCI has mobilized €10 billion in public/private resources since its launch in 2023, with Kembara representing the first ETCI investment in a Spain-based fund.

Kembara was founded in 2023 by Yann de Vries and Javier Santiso, who lead a team of experienced investors specializing in climate and deep technology. The team also includes Robert Trezona, a climate tech investor, Pierre Festal, a deep tech expert, and Siraj Khaliq, a former Atomico partner serving as a strategic advisor. The fund managers emphasize that their collective experience in scaling technology ventures was instrumental in attracting significant institutional commitments.

The EIF’s investment in Kembara is particularly notable as it positions the fund as a key player in addressing a critical gap in the European venture capital landscape. Europe generates a substantial amount of deep tech innovation, but companies often face challenges in securing the later-stage funding required for international expansion and scaling. Fund managers have identified this funding gap as a major impediment to European companies becoming global leaders in these emerging technologies.

The fund’s strategy is focused on Germany, Spain, France, and Sweden, but will also consider investments in other EU Member States. This pan-European approach aims to capitalize on the diverse range of deep tech talent and innovation across the continent.

The €350 million commitment from the EIF is part of a broader effort to support European tech champions. ETCI-backed funds have already invested in European startups with high growth potential, including two companies based in Spain. The initiative aims to support the growth of promising startups operating in cutting-edge technologies, such as AI and quantum computing.

The broader European cleantech investment landscape experienced a downturn in 2024, with equity investment falling 24% year-on-year to €8.8 billion. However, debt investment surged to €23.4 billion, driven by large deals and public sector financial institution participation. This shift highlights a changing dynamic in funding for cleantech companies, with a greater reliance on debt financing.

Despite the overall decline in equity investment, Kembara’s successful first close demonstrates continued investor confidence in the potential of European deep tech. With €750 million committed, the fund is actively seeking opportunities to invest in European startups poised for growth, expansion, and global competition. Reaching its full €1 billion target would establish Kembara as one of the largest dedicated deep tech funds in the region, further bolstering Europe’s position in the global innovation landscape.

The investment in Kembara comes at a time when Europe is striving to become a leader in deep tech and climate innovation. The convergence of technologies like AI, quantum computing, and synthetic biology presents a significant opportunity for European companies, but requires substantial investment to support their growth and development.