Cathay Innovation Closes $1B Fund to Supercharge AI in Healthcare, Finance, Energy, and Consumer Tech

Mingpo Cai (Left), Founder/Chairman, and Denis Barrier (Right), Co-Founder of Cathay Innovation

Cathay Innovation just locked in a massive $1 billion for its latest venture fund, now officially the largest AI-focused VC fund to come out of the European Union. Even though it’s based in Paris, the firm is spreading that capital across startups in Europe, the U.S., and Asia, all with one thing in common — they're applying artificial intelligence to reshape specific industries from the inside out.

Fund III is zeroing in on AI in four key sectors: digital health, financial services, consumer products, and mobility/energy. The check sizes range from $5 million to $100 million, with a plan to lead or co-lead funding rounds and continue supporting companies as they scale. So far, the fund has already backed 14 startups, including Nabla, AQEMIA, and Bioptimus in healthcare, Flowdesk and Ping++ in finance, and David Energy and Entalpic on the energy side.

This fund didn’t come together by accident. It’s backed by over 20 global corporations like Sanofi, TotalEnergies, BNP Paribas Cardif, and Groupe ADP, all looking to plug directly into the next generation of AI-driven innovation. Cathay’s model isn’t just about writing checks — it’s about linking startups with these big players to fast-track go-to-market strategies and tech adoption.

"In one of the most challenging fundraising periods the venture industry has seen, Fund III illustrates the power of value-added capital," said Mingpo Cai, Founder and Chairman of Cathay Capital and Cathay Innovation, highlighting the significance of the announcement.

Denis Barrier, Co-founder of Cathay Innovation, likens AI to electricity — not just a tool for optimization, but a force capable of rebuilding entire industries.

• His take: the future belongs to startup-corporate collaborations, not stand-alone disruptors.

Cathay has already helped connect companies like Owkin and AQEMIA with biopharma giant Sanofi for real-world AI deployments. That model is clearly working, as more corporations sign on not just as investors, but as co-innovators.

A recent update from the firm confirms Fund III is now officially classified under Article 8 of the EU’s Sustainable Finance Disclosure Regulation, signaling its push toward tech that’s not just scalable, but socially and environmentally aligned.

The firm’s platform, now spanning six offices across the globe, is designed to help startups leap across borders — whether that’s U.S.-based companies expanding into Europe or vice versa. It’s a strategic bet in a world where innovation is fragmented, but the appetite for transformation is global.