Elaia reaches €120M first close for new deeptech fund

What’s the deal? Elaia has reached a €120 million first close for its Digital Venture Fund V, targeting early-stage deeptech startups across Europe. The Paris-based venture capital firm plans to back around 25 companies, writing initial cheques of €1 million to €5 million.

The fund focuses on artificial intelligence, cybersecurity, digital health, and developer tools. It will invest from pre-seed to Series A, reserving capital for follow-on rounds.

Investors include institutional backers, corporates, family offices, and the European Investment Fund.

Why now? The raise comes as deeptech startups face a tougher funding climate, with venture capital more selective and later-stage rounds harder to secure. By closing €120 million early, Elaia can invest while valuations remain under pressure.

Europe is also pushing to strengthen its tech sovereignty, especially in AI and cybersecurity. Public and private investors are showing renewed interest in backing homegrown innovation.

What could go wrong? Deeptech is capital-intensive and often requires long development cycles. Returns can take years, and follow-on funding may dry up if markets tighten.

Competition for top founders is intense, particularly in AI. Larger US funds and corporates may outbid smaller European firms.

The signal: Elaia’s fund shows continued conviction in European deeptech despite a slower venture market. Investors are still committing significant capital — €120 million at first close — to specialist managers.

The move reflects a shift toward earlier-stage investing and defensible technologies. In a cautious market, firms that combine domain expertise with patient capital may have an edge.

Sources:
Tech Funding News
Tech.eu

J.V.