IQ Capital secures £320m to invest in deep tech startups

Deep tech-focused VC firm IQ Capital has secured $400m (£320m) across two funds to continue investing in the sector.

London and Cambridge-based IQ Capital achieved a final close of $200m (£160m) for its fourth fund and launched its second growth fund of the same size.

Kerry Baldwin, managing partner and co-founder of IQ Capital, said: “Deep tech will play a pivotal role as both the UK and Europe continue to lead the way in developing technology that will have a lasting global impact.”

According to the firm it now has over $1bn in assets under management. It will invest in UK and European startups at the seed to Series A stage. The growth fund target startups across multiple stages and includes scope for $30m investments into companies expanding internationally.

IQ Capital has already invested in protein generative AI startup DreamFold with financing from Fund IV.

Alumni investments of the venture capital firm include Grapeshot (acquired by Oracle), Bloomsbury AI (acquired by Facebook), and Phonetic Arts (acquired by Google).

Its portfolio features 3D printing software startup TOffeeAM and fellow Cambridge-based battery tech maker Nyobolt.

Max Bautin, managing partner and co-founder of IQ Capital, said: “Breakthroughs in ‘novel AI’ models, new energy and climate, robotics and space tech, quantum computing, synthetic biology – all demonstrate what a significant opportunity deep tech now presents.”

Fund IV has been financed by cash from British Patient Capital, institutions, funds of funds, family offices, corporates and entrepreneurs.

Other deep tech funds operating from Cambridge include Amadeus Capital and Cambridge Innovation Capital.