France’s deeptech ecosystem is gaining fresh momentum as mission-driven venture capital firm daphni completes the final close of its Blue fund at €260 million, surpassing its original target and signalling renewed confidence in science-led innovation. The milestone comes at a time when venture markets remain cautious, yet investor appetite for long-term, research-backed technologies addressing systemic challenges appears to be strengthening.
A rapid close in a cautious market
The Blue fund reached its final close in just nine months, an unusually fast timeline given the broader slowdown in European venture capital. During this period, daphni has already deployed capital into nine deeptech startups emerging from some of France’s most respected research institutions, including INRIA, Institut Curie, INSERM and Institut Langevin. The speed of both fundraising and deployment reflects a high level of conviction among limited partners and underlines the firm’s increasingly established position in the European venture landscape.
Investor interest has been driven by daphni’s clear thesis: Europe produces world-class scientific research, but too little of it is translated into scalable companies. By focusing on this gap, the firm positions itself at the intersection of public research, entrepreneurship and long-term capital.
Turning science into companies
At the core of the Blue fund is the belief that the next generation of transformative companies will emerge where science meets digital technologies, artificial intelligence and the physical world. These innovations often require patient capital and specialised operational support, as commercialisation cycles are longer and risks differ from those of pure software startups.
Pierre-Eric Leibovici, Founder and Managing Partner of daphni, has repeatedly highlighted the paradox facing Europe: a vast reservoir of intellectual property across biology, chemistry, physics and mathematics, paired with limited mechanisms to bring these breakthroughs to market at scale. According to Leibovici, this disconnect represents both a structural weakness and a major opportunity for venture investors willing to engage deeply with science-based entrepreneurship.
Early investments set the tone
The Blue fund is expected to back around 40 European companies over its lifetime. Its first investments provide a clear view of the type of ventures daphni aims to support. Several portfolio companies are direct spin-outs from leading research labs and reflect a strong emphasis on deep scientific differentiation.
Owlo, originating from Institut Langevin, is developing real-time, non-invasive 3D microscopy that could advance fertility research and pharmaceutical development. EverDye is applying green chemistry to textile dyeing, offering a patented solution that works with existing industrial equipment while dramatically reducing environmental impact. Karavela, spun out of INRIA, is building a brain foundation model using functional MRI data to unlock new digital biomarkers and non-invasive brain–machine interfaces. Neotis is pursuing immunotherapies that target senescent cells, with the aim of treating age-related chronic diseases.
These investments build on daphni’s earlier track record with science-driven companies such as Pasqal, Moonwatt and Pruna AI, demonstrating continuity in strategy across fund generations.
Aligning capital with impact
In keeping with its mission-driven identity, daphni embeds impact considerations directly into its fund structure. A portion of the carried interest for the Blue fund is linked to ESG criteria, ensuring that financial performance is aligned with measurable societal and environmental outcomes. This approach reflects a broader shift among European investors toward integrating impact into core return expectations rather than treating it as a secondary objective.
Strengthening Europe’s deeptech pipeline
With the Blue fund now fully closed, daphni is positioned to play a larger role in strengthening Europe’s deeptech pipeline. By combining capital, a large entrepreneurial community and a proprietary digital platform, the firm aims to systematically convert scientific excellence into companies capable of addressing major global challenges while generating long-term economic value.
As venture capital continues to rebalance after years of volatility, daphni’s successful close suggests that science-led, mission-driven investing is emerging as a resilient pillar of Europe’s innovation economy.