## Cloudberry Ventures Launches €50M Fund to Revitalize Europe’s DeepTech Landscape

Cloudberry Ventures Raises €50M to Fuel the Future of DeepTech

London, UK – Cloudberry Ventures, a prominent venture capital firm focused on pioneering DeepTech innovations, has announced the launch of a significant €50 million fund. This strategic investment will fuel the growth of early-to-growth stage startups across Europe, North America, Asia, and Australia, spanning critical sectors including artificial intelligence (AI), advanced computing, and foundational infrastructure. Led by industry veterans with deep technical expertise, Cloudberry Ventures aims to address a critical gap in the current investment landscape, particularly concerning the development and scaling of core technological components that underpin the rapidly evolving world of AI and beyond.

The announcement underscores a growing recognition within the venture capital community that the current trajectory of AI development is facing fundamental limitations. While advancements in software and algorithms continue at a breakneck pace, the physical infrastructure necessary to support these advancements – encompassing specialized hardware, advanced materials, and robust computational systems – is lagging behind. This imbalance, often referred to as the “SaaSpocalypse,” is creating bottlenecks and hindering the full potential of AI and other transformative technologies.

The Growing Need for DeepTech Investment

The rise of sophisticated AI applications, from autonomous vehicles to advanced robotics and personalized medicine, has placed unprecedented demands on computing power, data storage, and networking capabilities. Traditional silicon-based technologies are reaching their physical limits, necessitating innovation in areas like quantum computing, photonics, advanced memory solutions, and novel materials. Cloudberry Ventures’ €50 million fund directly addresses this crucial need by focusing on companies developing these foundational technologies. The firm aims to be a catalyst for innovation, accelerating the development and commercialization of solutions that will power the next generation of technological advancements.

Addressing the “SaaSpocalypse”

The term “SaaSpocalypse,” coined by Cloudberry Ventures, aptly describes the potential instability arising from an over-reliance on cloud-based infrastructure. As more and more applications and services migrate to the cloud, the existing infrastructure struggles to keep pace, leading to performance issues, security vulnerabilities, and escalating costs. Cloudberry Ventures believes that investing in robust, scalable, and resilient foundational technologies is essential to mitigate these risks and ensure the long-term sustainability of the digital economy. The firm’s focus on physical infrastructure seeks to build a stronger, more dependable base upon which future technological innovation can thrive.

Focus Areas of the Fund

Cloudberry Ventures’ new fund strategically targets three key areas:

• Industrial Infrastructure: This pillar focuses on advancements in materials science, energy solutions, and advanced manufacturing technologies. The goal is to foster innovation that drives efficiency, sustainability, and automation across various industries. This includes areas like next-generation battery technology, advanced composites, and smart manufacturing systems.
• Compute Infrastructure: Recognizing the growing demand for more powerful and efficient computing capabilities, this area focuses on breakthroughs in next-generation memory technologies (like memristors and 3D NAND), quantum computing, photonics, and edge AI. These technologies are crucial for enabling faster processing speeds, reduced energy consumption, and real-time data analysis.
• Financial Infrastructure: This segment aims to revolutionize the financial sector through blockchain-enabled settlement systems, digital assets, and secure data management solutions. The focus is on building a more transparent, efficient, and resilient financial ecosystem.

By concentrating its investments in these foundational areas, Cloudberry Ventures is positioning itself to capitalize on the long-term growth potential of sectors that are essential to the future of the economy.

The Cloudberry Ventures Advantage

What distinguishes Cloudberry Ventures from other venture capital firms is its unique blend of technical expertise, operational experience, and a deep understanding of the challenges faced by DeepTech startups. The firm is led by experienced investors and advisors, including prominent figures from Alphabet’s X (formerly Google X) and Qualcomm, who bring a wealth of knowledge and a global network to the table. This expertise allows Cloudberry Ventures to provide more than just capital – it offers strategic guidance, hands-on support, and a long-term perspective that is often lacking in traditional venture funding.

A Track Record of Success

Cloudberry Ventures’ previous investment vehicle, Cloudberry Pioneer Investments (CPI), has demonstrated a strong track record of success. Within just 16 months, CPI achieved an impressive 86% Gross IRR and a 2.4x MOIC (Multiple on Invested Capital). Notable investments from CPI include Quantum Brilliance, a European leader in quantum computing hardware, Keyrails, a company building next-generation financial infrastructure, and Syntiant Corp., a pioneer in edge AI. This proven success provides confidence in Cloudberry Ventures’ ability to identify and nurture high-potential DeepTech startups.

Addressing the European DeepTech Challenge

Mahir Sahin, founding partner of Cloudberry Ventures, highlights a critical challenge facing Europe’s innovation ecosystem. “Europe produces world-class science and IP, yet comparatively few ventures are built from it,” he explains. “While European scientists are often exceptional at generating groundbreaking research, there is a need for investors who possess both the financial resources and the operational expertise to translate these innovations into successful, globally competitive companies. We at Cloudberry Ventures are committed to filling this gap.”

Sahin points to a concerning trend of European DeepTech companies being acquired at discounted valuations by US investors, who then relocate the technology and talent to the United States. Cloudberry Ventures aims to reverse this trend by providing European innovators with the capital and support they need to build and scale their businesses within Europe.

Key Takeaways

• Focus on Foundational Technologies: Cloudberry Ventures is investing in the core infrastructure that underpins the future of AI and other transformative technologies.
• Addressing the SaaS Problem: The fund aims to mitigate the risks associated with over-reliance on cloud-based infrastructure.
• Experienced Leadership: The firm is led by industry veterans with deep technical and operational expertise.
• Strong Track Record: Cloudberry Pioneer Investments has delivered impressive returns for investors.
• Supporting European Innovation: The fund is committed to fostering growth and competitiveness within Europe’s DeepTech ecosystem.

Conclusion: A Catalyst for DeepTech Growth

Cloudberry Ventures’ €50 million fund represents a significant investment in the future of DeepTech. By focusing on foundational technologies, addressing the limitations of current infrastructure, and providing the necessary expertise to scale innovative ventures, Cloudberry Ventures is poised to play a crucial role in shaping the next generation of technological advancements. The firm’s commitment to Europe’s DeepTech ecosystem is particularly noteworthy, offering a vital lifeline to talented scientists and entrepreneurs who are driving innovation but often lack the resources to fully realize their potential. This fund is not just about capital; it’s about building a more robust, resilient, and innovative technological future.