Paris-based venture capital firm daphni has successfully completed the final closing of its daphni Blue fund at $311 million, surpassing its initial target in under ten months. This new fund is strategically designed to invest in early-stage, science-driven startups across Europe, aiming to transform the continent's deep research base into globally competitive companies. Demonstrating significant momentum, the fund has already deployed capital into nine deeptech ventures emerging from prominent European research institutions.
A Strategic Shift Towards Deep Science
The launch of daphni Blue marks a deliberate strategic pivot for the firm, which is known for backing unicorns like Back Market and Swile. Co-founder Pierre-Eric Leibovici stated that in an era of commoditized technology and AI, the most durable long-term value originates from deep scientific breakthroughs. This conviction drives the fund's focus on defensible intellectual property rooted in foundational research to build sustainable technological leadership.
The fund will specifically target 'scientist-entrepreneurs' whose ventures are based on core research in fields such as biology, physics, chemistry, and life sciences. Daphni's model combines its large entrepreneurial community with a dedicated digital platform to accelerate the transition from laboratory to market. The ultimate goal is to convert Europe's exceptional scientific capital into technology-driven enterprises that generate both significant economic and societal value.
Investment Strategy and Early Portfolio
Daphni Blue plans to support a portfolio of approximately 40 European companies throughout its lifecycle. The firm will issue initial investment tickets ranging from $598K to $11.9 million, with the capacity for follow-on investments of up to $23.9 million. This structure provides startups with the long-term capital and specialized support required to navigate the complex path of commercializing scientific innovations.
The fund's rapid deployment of capital underscores strong investor interest in its thesis, with nine investments already completed. Early portfolio companies include OWLO, which is developing non-invasive 3D microscopy for fertility research, and EverDye, which offers an eco-conscious textile dyeing process. Another notable investment is Karavela, an INRIA spinoff building a brain foundation model using functional MRI data.
European Deeptech in a Global Context
Despite a broader slowdown in venture capital, daphni's successful fundraise highlights a growing institutional appetite for deeptech and science-intensive strategies in Europe. This trend is reflected in several other recent fund announcements, collectively channeling hundreds of millions into ventures emerging from the continent's research ecosystem. This sustained capital deployment signals confidence in Europe's potential to lead in long-horizon, research-based innovation.
Daphni believes Europe is uniquely positioned to spearhead this shift, citing the continent's 2.2 million researchers and robust public research infrastructure as a major competitive advantage. The firm is actively collaborating with leading French institutions like INRIA, INSERM, and Institut Curie, as well as broader European research networks. Its model is built to bridge the critical gap between scientific discovery and successful entrepreneurship.
A Mission-Driven and Accountable Approach
In line with its mission-driven strategy, daphni Blue is focused on backing ventures that address major societal and environmental challenges. The fund targets both financial and non-financial performance, reflecting a commitment to creating a positive impact alongside strong returns. This dual-goal approach is central to the fund's identity and appeals to a growing class of limited partners.
To ensure accountability, a portion of the fund’s carried interest is directly linked to achieving specific Environmental, Social, and Governance (ESG) criteria. This mechanism formally aligns the financial incentives of the fund managers with long-term, sustainable value creation. It reinforces the fund's commitment to fostering innovation that is not only profitable but also responsible and beneficial for society.
The final close of the $311 million daphni Blue fund represents a significant vote of confidence in Europe's scientific and entrepreneurial potential. By providing critical early-stage capital and a supportive ecosystem, daphni is positioning itself as a key catalyst in translating breakthrough research into globally impactful companies. The fund's swift fundraising and initial investments signal a strong start to its mission of building Europe's next generation of science-powered champions.