French venture capital firm Daphni has announced the first close of its latest fund, Daphni Blue, securing €200 million (around $215 million) with plans to reach €250 million ($270 million) by the end of the year. The new fund underscores Daphni’s growing commitment to backing European startups driving innovation across science, deep tech, and sustainable technologies.
Since launching in 2015, Daphni has built an impressive track record with investments in 70 European startups, including standouts like Back Market, Swile, Hubcycle, and Pasqal. With Daphni Blue, the firm now plans to invest in an additional 40 startups, continuing its mission to fuel Europe’s next generation of tech leaders.
The fund has attracted strong support from institutional investors. Crédit Mutuel Arkéa, Bpifrance, the European Investment Fund, PRO BTP, and Swen Capital Partners are among the major limited partners backing this new strategy.
Speaking about the fund’s focus, founding partner Pierre-Eric Leibovici emphasized the need for differentiation in an increasingly competitive market. “We have to ask ourselves how we can stand out while supporting technologies and services that prioritize sustainability,” he explained. Leibovici pointed out that market cycles tend to favor American dominance or lead to industry consolidation, making it critical to identify true breakthroughs early.
Unlike many venture firms currently hyping artificial intelligence in every pitch, Daphni is shifting its attention to science-led innovation. The firm believes that areas like life sciences, physics, chemistry, biology, and mathematics will be the driving forces behind the next wave of groundbreaking technologies.
“When we talk about quantum computing, it’s really fundamental physics combined with hardware and software,” Leibovici noted. He added that large language models like those powering generative AI are, at their core, breakthroughs in mathematics.
To support this science-first strategy, Daphni is bringing fresh talent into the fold. The investment team now includes both a PhD graduate and a current PhD student—professionals deeply immersed in scientific research and capable of evaluating complex technologies.
Leibovici also observed a growing trend among today’s researchers: many are now eager to commercialize their work. “The new generation of scientists is much more open to turning their fundamental or applied research into startups because they’re surrounded by peers doing exactly that,” he said.
Interestingly, this pivot towards deep science wasn’t influenced by recent moves from French universities allocating more resources to attract American researchers. “It’s purely coincidental. We began this strategy long before that trend emerged,” Leibovici clarified. Still, Daphni remains open to backing American scientists who choose to launch their ventures in Europe.
As Daphni Blue gears up to deploy its fresh capital, the team remains laser-focused on delivering strong returns. Leibovici made it clear that raising a fund is just the beginning. “Fundraising isn’t the goal. What truly matters is delivering returns through successful exits,” he said.
With Daphni Blue, the firm aims to prove that science-led investing can unlock Europe’s untapped potential, driving innovation that’s not just disruptive—but sustainable and globally competitive.
