High IQ: Cambridge VC to invest over $300m in deep technology
IQ Capital - a deep tech VC business based in Cambridge will invest more than $300 million in deep technology plays this year after launching a new $125m Growth Opportunities Fund and closing its third venture fund, IQ Capital Fund III, at $175 million.
The Growth Opportunities Fund will provide later-stage capital to outperforming companies in their existing venture portfolio. Privitar, the global leader in data privacy engineering which IQ Capital supported since seed stage, is the first investment from the new fund as part of a $40m Series B raise.
Alongside the launch of the new venture, IQ Capital has reached the final closing for its third venture fund which was significantly oversubscribed. More than 90 per cent of the firm’s Fund II investors doubled down on their commitment by re-investing in Fund III, which focuses on investing in companies at seed and Series A stage.
National Grid Partners has joined British Patient Capital and a number of other global institutions as investors in Fund III. In the last year, IQ Capital has invested in 12 companies, including Causalens, Concirrus, and Iotic. These early-stage startups join Fund II scale-ups Thought Machine, Fluidic Analytics, Paragraf, and Speechmatics – these latter three all rooted in Cambridge – driving portfolio enterprise value to more than $1.2 billion today.
Max Bautin, co-founder and partner at IQ Capital, said: “The partners, Ed Stacey, Kerry Baldwin, and I, have been investing in deep-tech for over 20 years and during this time we’ve seen investment in the sector grow from tens of millions p.a. to $1.75 billion deployed across Europe in 2018 alone.
“Half of this capital was invested into UK startups, reinforcing the UK as a leader in Europe, with well-established technology ecosystems formed in Cambridge, Bristol, Oxford, and London. “IQ Capital has grown its funds under management over 10x in the last five years, following exits to Google, Apple, and Facebook, and a double-dragon to Oracle. The investment team has tripled in size over the same period with recent joiners Rick Hao, Daniel Carew and Marek Chalupnik. IQ Capital is now firmly established as the leading deep tech investor in the UK.”