Mundi Ventures Launches €750M Kembara Fund to Propel European Deep Tech and Climate Innovations
In a significant move to bolster Europe’s deep tech and climate technology sectors, Mundi Ventures has announced the first close of its latest fund, Kembara Fund I, at €750 million. This milestone underscores the growing commitment to advancing technological innovations that address pressing environmental challenges.
Addressing the Growth Capital Gap
Europe has long been a fertile ground for early-stage climate startups. However, many of these ventures encounter substantial hurdles when seeking Series B funding, often leading to stagnation or failure. Recognizing this critical gap, Mundi Ventures has strategically positioned Kembara Fund I to provide the necessary growth capital, ensuring that promising startups can scale effectively and realize their full potential.
Strategic Partnerships and Commitments
The journey to this substantial first close was marked by strategic collaborations and significant commitments. In 2024, the European Investment Fund (EIF) pledged €350 million to Kembara under the European Tech Champions Initiative. This initiative aims to fortify Europe’s technological landscape by supporting high-potential tech companies. The EIF’s substantial commitment not only provided a financial boost but also served as a strong endorsement of Kembara’s mission and strategy.
Leadership and Expertise
Kembara Fund I is managed by a dedicated team within Mundi Ventures, with offices strategically located in Madrid, London, Barcelona, and Paris. The fund’s leadership comprises seasoned professionals with extensive experience in venture capital and technology investments:
– Yann de Vries: Co-founder and General Partner, de Vries brings a wealth of experience from his tenure at Atomico and his role at German electric aircraft startup Lilium. His firsthand insights into the challenges faced by European tech startups are invaluable to Kembara’s strategic direction.
– Javier Santiso: Founder of Mundi Ventures and now Co-founder and General Partner of Kembara, Santiso’s vision and leadership have been instrumental in shaping the fund’s objectives and approach.
– Robert Trezona: As a General Partner, Trezona’s expertise in climate tech investments adds depth to the fund’s focus on sustainable technologies.
– Pierre Festal: Serving as a General Partner, Festal’s background in deep tech venture capital complements the fund’s emphasis on cutting-edge technological innovations.
– Siraj Khaliq: Former Atomico partner, Khaliq joins as a Senior Strategic Advisor, offering strategic insights and guidance to the fund’s operations.
Aiming for a €1.25 Billion Final Close
While the initial close at €750 million is a significant achievement, regulatory filings from Spain indicate that Kembara Fund I has the potential to reach a final close of €1.25 billion. Achieving this target would position Kembara as one of the largest funds dedicated to deep tech and climate technology in Europe, providing a substantial financial reservoir to support transformative innovations.
Overcoming Fundraising Challenges
Securing €750 million in a relatively short span of two years, especially for a first-time fund in the current economic climate, was no small feat. Co-founder Yann de Vries acknowledged the challenges faced during the fundraising process, highlighting the complexities of attracting substantial investments amidst a competitive and cautious financial environment. The successful close is a testament to the fund’s compelling vision and the confidence investors have in its leadership and strategic focus.
A Response to European Startup Challenges
The inception of Kembara Fund I is, in part, a response to the broader challenges faced by European climate and deep tech startups. Many of these ventures, despite their innovative potential, struggle to secure the necessary growth capital to scale operations and compete on a global stage. This issue was starkly highlighted by the experience of Lilium, the German electric aircraft startup where de Vries previously served. Lilium’s bankruptcy in 2024, after raising over $1 billion and going public via a SPAC, underscored the critical need for accessible growth capital in the European tech ecosystem.
Strategic Investment Focus
Kembara Fund I is poised to invest in a diverse array of deep tech and climate technology startups across Europe. The fund’s strategic focus includes:
– University Spinouts: Europe boasts a rich landscape of university-led innovations. Kembara aims to support these spinouts, facilitating their transition from academic research to commercial viability.
– Industrial Synergies: By investing in technologies that offer synergies with existing industries, Kembara seeks to accelerate the adoption and integration of innovative solutions into established markets.
– Sustainable Technologies: Emphasizing investments in technologies that address environmental challenges, the fund aims to contribute to global sustainability efforts while generating substantial returns.
Implications for the European Tech Ecosystem
The launch of Kembara Fund I represents a significant boost to the European tech ecosystem. By providing substantial growth capital, the fund addresses a critical bottleneck that has hindered the scaling of innovative startups. This initiative is expected to:
– Enhance Competitiveness: By enabling startups to scale effectively, Kembara contributes to enhancing the global competitiveness of European tech companies.
– Foster Innovation: The availability of growth capital encourages continued innovation, as startups are assured of the financial support needed to bring groundbreaking ideas to market.
– Attract Talent: A robust funding environment attracts top talent, further strengthening the ecosystem and driving technological advancements.
Looking Ahead
As Kembara Fund I progresses towards its final close, the focus will be on identifying and investing in high-potential startups that align with the fund’s strategic objectives. The leadership team’s combined expertise positions Kembara to make informed investment decisions that drive both financial returns and positive environmental impact.
In conclusion, Mundi Ventures’ Kembara Fund I stands as a beacon of support for Europe’s deep tech and climate technology sectors. By addressing the critical need for growth capital, the fund paves the way for innovative startups to scale, compete globally, and contribute to a sustainable future.
