European venture capital firm redalpine has raised $250 million for its eighth early-stage fund, which will support around 20 technology companies across Europe.
The fund, known as redalpine capital VIII (RAC VIII), closed above its original target after attracting commitments from existing and new investors. This brings the firm’s total assets under management to more than $1.4 billion.
Founded in Zurich in 2006, redalpine invests in companies working across software, artificial intelligence (AI), robotics, biotechnology and other scientific fields. The company’s investment team includes biologists, physicists and engineers, with scientists making up half of the team.
Dr Michael Sidler, founding partner at redalpine, said the firm had maintained its focus on companies combining software and science since its establishment 20 years ago.
“Twenty years ago, we started redalpine with the conviction that the most important companies would emerge where software and science meet. That belief hasn’t changed. With RAC VIII, we’re excited to keep backing these founders early, before the opportunity is obvious.”
The firm plans to select its new investments from more than 5,000 companies each year. It will mainly lead Seed and Series A funding rounds, with initial investments ranging from $1 million to $15 million.
Its first investments from RAC VIII include Enact Intelligence, which develops force intelligence technology for robotics; Helical, a virtual AI laboratory for drug discovery; and Arlequin AI, which is developing an AI architecture to protect critical systems.
Sebastian Becker, General Partner at redalpine, said founders with a strong understanding of science would have an advantage as AI becomes more widely accessible.
“AI is levelling the playing field more than ever. The advantage now lies with whoever understands the underlying science and the hardest problems best, and that has always been Europe’s strength.
“We’re seeing a new generation of highly ambitious founders who are determined to build and scale world-leading tech companies from here and establish Europe as a global technology power.”
redalpine’s existing portfolio includes AI company Mistral AI, digital bank N26 and fusion energy developer Proxima Fusion. Other investments include Basecamp Research and microagi, alongside more than 100 companies.
Its previous early-stage fund, RAC VII, closed in 2024. Companies backed by that fund have since raised more than $1.1 billion in additional funding.
The firm also reported 12 portfolio company exits since 2023, despite limited exit activity across the wider technology sector.
Francesco Sciortino, co-founder and CEO of Proxima Fusion, said redalpine supported the company from its early stages and led its Seed funding round.
“redalpine was early in understanding Proxima’s potential for Europe’s energy future and led our Seed round. With RAC VIII, they can bring that same speed and technical depth to more founders tackling genuinely hard and important problems.”
Several institutional investors participated in RAC VIII, including Aviva Investors, Flexstone Partners and KfW. Entrepreneurs, business owners and executives with specialist industry knowledge also committed capital to the fund.
Cynthia Chen, head of Fintech at Aviva Investors, said the partnership would give the investment firm access to promising technology businesses across the UK and Europe.
“redalpine has a proven track record in backing fantastic European businesses that are at the forefront of technology and scientific innovation.
“At a time when global VC markets are competing more intensely than ever for investor capital, we are thrilled to partner with the team at redalpine and believe it can help us gain greater access to support some of the most exciting, high-growth, disruptive and innovative start-ups across the UK and Europe.
“We view partnerships like this as being vital for the continued growth of our portfolio and, ultimately, supporting the delivery of long-term investment outcomes for pension investors.”
Beyond early-stage investments, redalpine has expanded into a multi-stage investment platform, allowing it to continue backing companies as they grow, rather than limit its support to their first funding rounds.
The firm also wants more European technology companies to retain their value within the region, with local institutional investors, including pension funds, playing a larger role in financing their growth.
Rafael Hubatschek, partner and head of Investor Relations at redalpine, said institutional investors were showing renewed interest in European technology businesses.
“European self-confidence is back, and nowhere more visibly than among institutional investors, who are now putting real conviction behind European technology. Our fund platform lets us back founders from Seed to scale, so we can keep supporting them as they grow into global category leaders.”
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Tags:redalpine, RAC VIII, European venture capital, technology start-ups, AI start-ups, deeptech investment, Seed funding, Series A funding, European technology companies
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Joan Aimuengheuwa
Editorial team member & technology reporter at Techeconomy.
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