London-based early-stage investment firm Transition Ventures has successfully closed its second fund, securing €128 million ($150 million). This new capital injection brings the firm's total assets under management to over €257 million ($300 million). The fund will continue to support founders developing transformative technologies at the intersection of artificial intelligence and the physical world.
A New Era of Venture Capital
Transition Ventures operates on the belief that incremental improvements are no longer sufficient for meaningful progress. Co-founder David Helgason states that ambitious founders aim to create lasting legacies, and the firm is dedicated to providing them with the right backing. This approach challenges the traditional venture capital model by aligning investment with long-term, impactful values.
The firm's philosophy is rooted in the idea that the most important companies will leverage technology to overhaul legacy systems. They focus on creating cleaner and more efficient alternatives to address modern challenges. This strategy targets the core infrastructure of the global economy, from energy to materials and industrial processes.
Strategic Focus and Team Expertise
Investing from inception to Series A, Transition Ventures supports companies across Europe and the United States. Their portfolio targets critical areas such as energy systems for AI, robotics for industrial efficiency, and next-generation solutions for mineral refining. This broad yet focused scope allows them to engage with foundational technological shifts.
The firm is led by a team of seasoned founders and investors with a track record of building companies worth over €12 billion. Key partners include Unity founder David Helgason, Ari Helgason from Index Ventures, and veterans from Atomico, Balderton, and Earlybird. Their collective experience provides invaluable guidance to the startups they support.
A Thriving DeepTech Landscape
The launch of Fund II aligns with a significant trend across Europe, where specialist venture funds are increasingly raising capital for DeepTech and climate-focused startups. This movement reflects a growing recognition of the need for innovation in industrial systems and research-led ventures. Transition Ventures is a key player in this evolving investment landscape.
Recent activity highlights this trend, with over €1 billion disclosed across similar funds in 2026 alone. In the UK, firms like 2150 and Passion Capital have announced funds in adjacent segments. This pattern extends across the continent, with comparable funds emerging in Denmark, Poland, France, and Germany.
Portfolio Highlights and Success Stories
The firm's portfolio already includes several high-growth companies demonstrating its investment thesis. Olix, which develops energy-efficient photonics-based computing hardware, recently achieved a valuation of €858 million ($1 billion). Transition invested in the company's first round, which has since raised over €188 million.
Another notable investment is Applied Atomics, founded by former SpaceX engineers to develop small modular nuclear power plants for data centers. Seneca is also tackling critical challenges with its AI-powered autonomous drones for wildfire suppression, having raised €51 million. These companies exemplify the firm's focus on full-stack, principled innovation.
In the consumer space, Upway, a platform for refurbished e-bikes, has seen its revenue grow by more than 30 times since Transition's investment in 2022. The company has now raised over €103 million and put 200,000 refurbished e-bikes on the road. This success underscores the market demand for sustainable and efficient physical products.
With its new €128 million fund, Transition Ventures is well-equipped to back the next generation of founders rebuilding the physical world. The firm is committed to supporting those who "mold atoms, not just bits," to reinvent the foundations of human prosperity. This fund solidifies their position as a key partner for ambitious companies driving progress within planetary boundaries.