Cloudberry, a venture capital firm based in Helsinki and London, has announced the initial $35.2 million close of Europe's first dedicated semiconductor fund. This new fund will target early-stage companies in semiconductors, photonics, and advanced materials that are pushing technological boundaries. The launch aligns with Europe's strategic push to bolster its technological independence through major initiatives like the EU Chips Act.
Addressing a Critical Funding Gap
The semiconductor and photonics sectors represent a global market of approximately $1.5 trillion, poised to exceed $2 trillion within the decade. Despite their strategic importance for industries like AI and defense, early-stage deep-tech ventures remain significantly underfunded in Europe. Most investment has historically flowed towards large manufacturing projects, leaving a crucial innovation gap that Cloudberry aims to fill.
Strategic Backing from Industry Giants
The fund is anchored by the Finnish state-owned investment company Tesi and has secured 85 percent of its capital from outside Finland. It is also supported by industry leaders like semiconductor manufacturer GlobalFoundries and photonics specialist Radiant Opto-Electronics. These partnerships provide portfolio companies with invaluable access to manufacturing know-how, prototyping support, and global supply chains.
Investment Strategy and Vision
Cloudberry plans to invest up to $1 million in pre-seed and seed rounds for as many as 20 European companies. Founding Partner Veera Pietikäinen stated the goal is to build a specialist platform to help these companies grow. This effort aims to directly support and strengthen Europe’s technological sovereignty in critical sectors by nurturing innovation from the ground up.
The firm's long-term ambition is to establish Europe’s premier platform for semiconductor investment, from early to growth stages. Its team combines decades of operational and venture expertise from industry giants such as ASML and Bosch. This unique background positions Cloudberry to effectively identify and scale Europe's most promising deep-tech innovators in a complex field.
A Catalyst for European Tech Sovereignty
This launch comes as the continent accelerates its $50.4 billion EU Chips Act, which aims to double its global market share by 2030. Cloudberry's fund acts as a vital private-sector complement, focusing on nurturing the foundational startups essential for this long-term goal. It addresses the need for early-stage capital that large-scale public initiatives often overlook.
The industry is shifting away from traditional transistor scaling, creating new opportunities for innovation as Moore's Law slows. This new era demands system-level scaling, novel materials, and advanced solutions in photonics and compound semiconductors. Cloudberry is positioned to capitalize on this technological transition by backing the companies building these next-generation architectures.
The establishment of Cloudberry's $35.2 million fund marks a pivotal moment for Europe's deep-tech landscape. By combining specialized capital with strategic industry support, the firm is poised to fill a critical funding gap for early-stage innovators. This initiative represents a significant and timely step toward building a more resilient and competitive European semiconductor ecosystem.