Venture Capital

European venture capital has long been shaped by large multi-partner institutions, yet a quiet structural shift is now unmistakeable: a cohort of solo general partners — single decision-makers running focused, high-conviction funds — is increasingly winning the trust of the world’s most sophisticated institutional allocators. The latest and most striking example is Air Street Capital, the London-based, AI-first fund founded by Nathan Benaich, which has closed Fund III at $232 million — making it the largest solo GP venture fund in Europe. The close, announced on 23 March 2026, brings Air Street Capital’s total assets under management to approximately $400 million and marks a dramatic expansion from the firm’s origins. Fund I, raised in 2020, totalled just $17 million. Fund II reached $121 million. Fund III at $232 million represents a near-doubling of the prior fund, backed by a deepened and broadened set of limited partners. Inside Fund III: Strategy and Investment Parameters Air Street Capital invests in AI-first companies across both Europe and North America, with a clear preference for backing at the earliest stages. Initial cheques from Fund III will range from $500,000 to $15 million, with a reserved allocation for select growth investments of up to $25 million. The fund targets four sectors: software, science, the physical world, and — in an explicit addition for Fund III — defence. Benaich’s decision to include defence represents a notable step for a European venture firm, at a time when many institutional investors on the continent are still reluctant to back dual-use or military-adjacent technology. Air Street’s existing portfolio investment in Delian Alliance Industries signals a willingness to back companies operating in this increasingly strategically important domain. A Portfolio That Speaks for Itself The case for Fund III rests substantially on Air Street’s track record from its first two vehicles. The firm’s portfolio reads as something of a roll call of AI’s most prominent early-stage bets in Europe. Synthesia, the AI video generation platform backed by Air Street from an early stage, reached a $4 billion valuation in January 2026 following a $200 million Series E co-led by Alphabet’s GV and Nvidia’s NVentures. The company now reports $150 million in annual recurring revenue, with customers spanning more than 90 per cent of the Fortune 100. Wayve, the autonomous driving company also backed by Air Street, has deployed its AI driver across more than 500 cities worldwide — a significant operational milestone for a European deep-tech company in a capital-intensive sector long dominated by US and Chinese players. In scientific AI, portfolio company Profluent made headlines when it published the first AI-designed CRISPR gene-editing system in the journal Nature, establishing Air Street’s credentials in the frontier of AI-applied biology. Sereact, another portfolio company, has deployed embodied AI robotics in warehouses for BMW Group and Daimler Truck, demonstrating Air Street’s reach into industrial AI at scale. The Solo GP Model Under the Microscope Air Street Capital’s raise is a benchmark moment for the solo GP model in European venture capital. The traditional argument against single-partner funds — that concentrated decision-making creates concentration risk — appears to be giving way to a counter-argument: that thesis clarity, sector depth, and alignment of incentives can be more powerful than institutional headcount. Fund III is backed by a group of US university endowments, foundations, hospitals, and institutional investment platforms. Notably, many existing investors significantly increased their Fund III commitments, and several are backing a solo GP vehicle for the first time — a sign that allocators are recalibrating their assumptions about what venture capital governance should look like in an era defined by specialised technical domains. Benaich’s track record at the intersection of AI research and early-stage investment — he also co-authors the widely-read State of AI Report — gives Air Street an unusual combination of market visibility and technical credibility that larger, more generalist firms struggle to replicate. Key Details at a Glance

Europe’s venture capital ecosystem has long grappled with a persistent gap between academic research excellence and commercial startup activity. While European universities and research institutions produce world-class science, translating that output into fundable, scalable companies has historically required specialist intermediaries with deep institutional relationships. French-Italian firm 360 Capital has built its Poli360 strategy around exactly that challenge — and its second fund has now reached an €85 million first close. 360 Capital Closes €85M First Close for Poli360 2 360 Capital has announced an €85 million first closing for Poli360 2, a seed-stage technology transfer fund targeting a total of €100 million. The firm expects to reach its final close by the end of 2026. Poli360 2 is structured to invest primarily in academic spinouts emerging from universities and research centres, with at least 80 per cent of capital to be deployed in Italy. The remainder will target early-stage deeptech opportunities across the wider European market. The fund plans to make between 20 and 25 investments, with initial tickets of approximately €2 million and follow-on capacity of up to €8 million per company. Institutional Backing and a Defence Dimension The investor base for Poli360 2 reflects both the institutional depth of 360 Capital’s relationships and the growing intersection of European deeptech with defence priorities. Limited partners include the European Investment Fund, participating through its InvestEU Defence Equity Facility, CDP Venture Capital, Italian pension funds, and a range of family offices. Corporate strategic investors add further weight to the syndicate: Brembo, the Italian braking technology group; MBDA, Europe’s leading missile systems manufacturer; and Lucchini RS, a specialist in rolling stock components. The presence of MBDA alongside the EIF’s defence facility signals a deliberate positioning of Poli360 2 at the intersection of dual-use technology and European industrial sovereignty — a theme that has gained considerable momentum since 2022. Two Investment Pillars: Automation and Sustainability The fund’s investment strategy is organised around two thematic pillars. The first, Industry Automation, encompasses robotics, semiconductors, artificial intelligence, and cybersecurity — technologies central to modernising European manufacturing and critical infrastructure. The second, Sustainability, covers advanced materials, energy transition technologies, and circular economy applications. Three investments have already been completed from Poli360 2: Neuronova, a semiconductors startup originating from the University of Grenoble and Politecnico di Milano; iNGage, focused on MEMS sensor technology; and Bynario, operating in cybersecurity. Building on Poli360 1’s Track Record The predecessor fund, Poli360 1, invested in 20 companies and has established a portfolio that includes several well-known deeptech names. Energy Dome, the CO₂-based long-duration energy storage company, and Phononic Vibes, which develops metamaterial solutions for noise and vibration control, are among the cohort, alongside ISAAC Antisismica, Inxpect, PhotonPath, and Equixly. 360 Capital was founded in 1997 and operates from offices in Milan and Paris. The firm manages approximately €500 million in assets under management and maintains an active portfolio of more than 50 companies spanning deeptech, climate technology, and digital sectors. Its broader investment activity extends from pre-seed to Series B across European markets. Market Context: Technology Transfer as a Strategic Priority The Poli360 2 close comes at a moment of heightened policy attention to European technological sovereignty. The European Commission’s InvestEU programme and its associated Defence Equity Facility have explicitly prioritised channelling institutional capital towards dual-use technology commercialisation — the kind of early-stage academic spinout that sits squarely in 360 Capital’s wheelhouse. Italy, the fund’s primary target market, has historically been underserved by specialist technology transfer vehicles. CDP Venture Capital, the venture arm of state lender Cassa Depositi e Prestiti, has been actively working to address this deficit, and its participation in Poli360 2 reflects alignment with national innovation strategy. With a €100 million target and three investments already deployed, Poli360 2 is on track to become one of the more substantial specialist technology transfer vehicles operating in continental Europe. Fund Summary

Europe’s deeptech investment ecosystem is gaining traction as more venture capital firms commit dedicated resources to bridging the gap between academic research and commercial application. Franco-Italian venture capital firm 360 Capital has announced a first closing of €85 million for Poli360 2, its new early-stage fund dedicated to technology transfer and deeptech startups spun out of European universities. The fund, which targets a final close of €100 million, will back 20 to 25 companies with initial cheques of around €2 million and follow-on capabilities reaching up to €8 million. At least 80 per cent of investments will be deployed in Italy, with up to 20 per cent allocated elsewhere in Europe, reflecting the firm’s Franco-Italian heritage and its deep ties to the continent’s leading research institutions. Strategic backers signal institutional confidence in deeptech The investor base for Poli360 2 includes a notable mix of public and private institutions. The European Investment Fund, CDP Venture Capital, several Italian pension funds, family offices, and corporate investors have all committed capital. Among the corporate backers are Brembo, the global leader in braking systems, MBDA, the European defence missile systems company, and Lucchini RS, a specialist in railway and industrial components. The presence of industrial corporate investors alongside institutional capital reflects a deliberate strategy. Deeptech startups — particularly those commercialising breakthrough research in areas such as advanced materials, energy systems, and industrial automation — often benefit from strategic partnerships with established manufacturers who can accelerate technology adoption and provide market access. Founded in 1997, 360 Capital has built a track record across the European technology landscape. The Poli360 2 fund builds on the experience of its predecessor, Poli360 1, which assembled a portfolio of approximately twenty holdings including Energy Dome, an innovative long-duration energy storage company, as well as Isaac and PhotonPath. European deeptech ecosystem matures with dedicated capital The fund’s strategy centres on two primary verticals: industry automation and sustainability. These themes align closely with broader European policy objectives, including the EU’s push for technological sovereignty and its ambitious climate targets. By focusing on seed-stage investments in university spinouts, 360 Capital is positioning itself at the earliest and most critical point in the deeptech commercialisation journey — where promising research often struggles to attract patient, knowledgeable capital. The Poli360 2 launch coincides with growing momentum for deeptech investment across Europe. Multiple specialist funds have emerged in recent years to address the specific needs of science-based startups, which typically require longer development timelines and deeper technical due diligence than their software counterparts. The European Investment Fund’s participation in Poli360 2 underscores the strategic importance policymakers attach to strengthening the continent’s technology transfer infrastructure. With a final close expected by year-end, 360 Capital aims to cement its position as a leading early-stage deeptech investor in Southern Europe while expanding its reach across the broader European research ecosystem. Summary Fund: Poli360 2 — 360 CapitalHQ: Paris, France / Milan, ItalyFounded: 1997 (360 Capital)First close: €85 million (target: €100 million)Focus: Deeptech, university spinouts — Industry Automation and SustainabilityGeography: 80% Italy, 20% rest of EuropeCheque size: ~€2M initial, up to €8M follow-onKey LPs: European Investment Fund, CDP Venture Capital, Brembo, MBDA, Lucchini RS

The European venture capital landscape continues to evolve, with solo general partners increasingly challenging the dominance of traditional multi-partner firms. Nathan Benaich’s Air Street Capital has closed its third fund at $232 million, making it the largest solo GP venture fund ever raised in Europe and signalling growing institutional confidence in concentrated, thesis-driven investment models focused on artificial intelligence. Fund III represents a remarkable growth trajectory for the London-based firm. Air Street Capital launched in 2019 with a modest $17 million debut fund, followed by a $121 million Fund II. The new vehicle will write initial cheques of $500,000 to $15 million for early-stage companies in North America and Europe, with a smaller allocation for growth-stage investments of up to $25 million. The fund’s precise figure — $232,323,232 — reflects Benaich’s characteristically unconventional approach. Institutional backing validates solo GP model The fund is backed by US university endowments, foundations, hospitals, and institutional investment platforms, many of which increased their commitments from previous funds or are investing in a solo GP venture firm for the first time. This institutional endorsement is significant: $232 million of LP conviction behind a single decision-maker represents a structural shift in how European venture capital is being allocated. The solo GP model offers distinct advantages that are resonating with sophisticated allocators. Solo general partners can move faster on term sheets, maintain consistent investment philosophy across fund cycles, and avoid the internal politics that sometimes cause larger partnerships to pass on unusual or contrarian bets. For a sector as fast-moving as artificial intelligence, this agility is proving to be a competitive edge. Air Street Capital’s portfolio already includes several notable AI-first companies such as Synthesia, the AI video generation platform, as well as Black Forest Labs, Sereact, Profluent, Delian Alliance Industries, and Poolside. The firm invests across AI applications in software, science, the physical world, and defence — sectors where artificial intelligence is moving from experimental to mission-critical. European AI investment gains momentum Air Street Capital’s fundraise comes at a time of unprecedented activity in European AI investment. According to recent data, funding rounds in Europe have never been larger, with US capital increasingly flowing into the continent’s most promising technology companies. The median funding round for a European startup grew 32 per cent between 2024 and 2025, the biggest leap since 2020. Benaich, who is also known for authoring the influential annual State of AI Report, founded Air Street Capital around a focused thesis: back AI-first companies at the earliest stages, lead rounds, and hold conviction long enough for the science to compound into commercial reality. This approach has attracted growing attention as the European ecosystem matures and AI-native startups move from research labs to production environments. The fund’s closing reinforces a broader trend of capital concentration around specialist, high-conviction investors in the AI space. As the technology sector navigates an era defined by rapid advances in foundation models and their commercial applications, investors with deep domain expertise and streamlined decision-making processes are increasingly well-positioned to identify and support the next generation of transformative companies. Summary Company: Air Street Capital — London, United KingdomFounded: 2019Fund: Fund III — $232 millionFocus: AI-first companies across software, science, physical world, and defenceStage: Early-stage ($500K–$15M), select growth ($25M)Notable portfolio: Synthesia, Black Forest Labs, Sereact, Profluent, PoolsideLP base: US university endowments, foundations, hospitals, institutional platforms

Europe’s defence technology sector is experiencing unprecedented momentum as geopolitical tensions reshape investment priorities across the continent. Traditional venture capital firms are pivoting towards dual-use technologies, whilst specialised funds emerge to capitalise on the estimated €500 billion European defence modernisation market over the next decade. London-based Keen Venture Partners has secured €150 million for what it claims is Europe’s largest dedicated DefenceTech fund, marking a significant milestone in the maturation of European military technology investment. The fund received backing from the European Investment Fund alongside several undisclosed institutional investors, positioning Keen as a major player in the rapidly expanding sector. DefenceTech fund raising reflects strategic European priorities The European Investment Fund’s participation signals institutional recognition of defence technology as a strategic priority for European autonomy. Unlike traditional Silicon Valley defence investors focused on large-scale contracts, Keen’s thesis centres on dual-use technologies that serve both civilian and military applications—a distinctly European approach that navigates complex regulatory frameworks whilst maximising commercial potential. “Modern battlefield requirements are evolving faster than traditional defence procurement cycles can accommodate,” explains the investment team. “We’re backing founders who understand that today’s conflicts demand software-first solutions, autonomous systems, and cyber resilience capabilities that can be deployed rapidly across multiple domains.” This €150 million represents more than double the typical European defence-focused fund, reflecting both increased LP appetite and the scale of opportunities emerging across the continent. The fund’s structure accommodates longer development cycles typical of defence applications whilst maintaining the growth trajectory expectations of institutional investors. European DefenceTech ecosystem gains institutional momentum Keen’s strategy targets startups developing autonomous systems, cybersecurity infrastructure, satellite communications, and advanced materials—sectors where European companies increasingly compete with established US and Israeli defence contractors. The fund’s European focus addresses a critical gap in defence technology financing, where American investors often require US-centric business models that limit European market penetration. The timing proves strategic as NATO’s Defence Innovation Accelerator ramps up activity and member states increase defence spending commitments to 2% of GDP. European governments are actively seeking indigenous alternatives to reduce dependence on non-EU defence suppliers, creating substantial market opportunities for portfolio companies that can navigate complex certification processes. Portfolio construction will emphasise companies with proven dual-use applications, regulatory compliance expertise, and scalable technologies adaptable to different European markets. This approach differentiates Keen from generalist VCs attempting to add defence exposure through occasional investments in the sector. This fund launch reinforces Europe’s emergence as a serious player in defence technology innovation, moving beyond traditional aerospace and shipbuilding towards the software-defined capabilities that will determine future military effectiveness. For European defence startups, access to dedicated capital with sector expertise removes a significant barrier to scaling within the continent’s complex regulatory and procurement environment.

European venture capital is doubling down on artificial intelligence, with a new wave of specialist funds emerging to back the next generation of AI-powered software companies. The latest entrant is Vendep Capital, which has closed €80 million to support founders building AI-native SaaS solutions across Europe and beyond. The timing reflects a maturing European AI ecosystem, where early-stage companies are moving beyond proof-of-concept to demonstrable market traction. Vendep’s fund size positions it competitively within the crowded European AI investment landscape, offering substantial capital for companies navigating the expensive development cycles typical of sophisticated AI products. Strategic Focus on AI-Era SaaS Investment Vendep Capital’s investment thesis centres on the fundamental shift happening in enterprise software, where traditional SaaS models are being reimagined through artificial intelligence capabilities. The fund targets companies that aren’t simply adding AI features to existing products, but are built from the ground up with AI as their core differentiator. This approach reflects broader trends across European venture capital, where investors are becoming increasingly discerning about AI investments. Rather than backing every company mentioning machine learning, funds like Vendep are seeking businesses with defensible AI advantages and clear paths to market dominance within specific verticals. The €80 million fund size allows Vendep to lead seed and Series A rounds, typically investing between €1-5 million per company. This positioning is strategic within Europe’s fragmented markets, where companies often require additional capital to expand across multiple regulatory jurisdictions compared to their US counterparts. European AI SaaS Market Dynamics European AI startups face unique opportunities and challenges that Vendep’s specialisation addresses. Regulatory frameworks like the EU AI Act, whilst creating compliance complexity, also establish competitive moats that favour well-funded, compliant European players over international competitors. The fragmented nature of European markets—with different languages, business cultures, and procurement processes—typically requires AI SaaS companies to develop more sophisticated localisation strategies. This complexity demands patient capital and sector expertise, both areas where specialist funds like Vendep can provide value beyond pure financing. Recent European AI SaaS successes, including companies like Typeform’s AI evolution and emerging players in vertical-specific AI solutions, demonstrate the sector’s potential. However, the capital intensity required for AI development and market expansion has created a funding gap that generalist VCs often struggle to fill adequately. Vendep’s emergence signals growing confidence in European AI capabilities, particularly in enterprise software where European companies have historically competed successfully against Silicon Valley rivals. The fund’s focus on AI-native approaches positions it to capitalise on the next wave of European unicorns emerging from the intersection of artificial intelligence and business software.

European impact investing is gaining unprecedented momentum as institutional capital increasingly demands measurable social and environmental returns alongside financial performance. This shift has created fertile ground for specialised funds that can navigate the complex intersection of profit and purpose, particularly as EU regulations like the Sustainable Finance Disclosure Regulation reshape the investment landscape. Rubio Impact Ventures has successfully closed its third fund at €70 million, reinforcing its distinctive approach of tying 100% of investments to measurable impact outcomes. The Madrid-based venture capital firm has established itself as a leading voice in European impact investing, demonstrating that rigorous impact measurement and strong financial returns need not be mutually exclusive. Impact investing fund closure signals sector maturation The successful closure of Rubio’s third fund reflects growing investor appetite for impact-focused strategies across Europe. Unlike traditional ESG approaches that often apply impact considerations as an overlay, Rubio’s methodology embeds impact measurement into every investment decision from day one. This comprehensive approach resonates particularly well with European institutional investors who face increasing regulatory pressure to demonstrate genuine sustainability credentials. The fund’s investor base comprises a mix of family offices, institutional investors, and impact-focused limited partners across Europe, highlighting the broadening appeal of impact investing beyond traditional philanthropic circles. Rubio’s track record of delivering both measurable impact and competitive financial returns has enabled it to attract capital from investors who previously viewed impact investing as requiring financial trade-offs. “Our third fund represents not just capital, but a mandate to prove that impact and returns are complementary forces,” explains the fund’s investment team. “European startups are uniquely positioned to lead global impact innovation, particularly in areas where regulatory frameworks create competitive advantages.” European impact startups attract focused capital Rubio’s investment thesis centres on European startups addressing sustainability challenges through technology-driven solutions. The firm’s portfolio spans sectors including clean technology, circular economy, social impact, and sustainable agriculture—areas where European companies often benefit from supportive regulatory environments and sophisticated consumer demand for sustainable alternatives. The €70 million fund size positions Rubio to lead Series A and B rounds for European impact startups, a critical funding gap in the market. Many impact-focused companies struggle to scale beyond seed funding, as traditional venture capital firms often lack the specialised expertise to evaluate impact metrics alongside financial projections. Rubio’s dedicated approach addresses this market inefficiency directly. The fund’s 100% impact-tied investment approach requires portfolio companies to establish clear, measurable impact objectives that align with UN Sustainable Development Goals. This methodology provides both entrepreneurs and investors with concrete frameworks for tracking progress beyond traditional financial metrics, creating accountability structures that drive genuine impact outcomes. This successful fund closure signals growing maturation within European impact investing, where specialised capital increasingly flows to startups that can demonstrate both scalable business models and measurable positive impact. As European markets continue prioritising sustainability across all sectors, focused impact funds like Rubio’s third vehicle are becoming essential infrastructure for the continent’s transition to a more sustainable economy.

The European venture capital landscape is witnessing a fascinating counter-trend. While many funds chase consensus picks and proven business models, a growing number of investors are deliberately seeking the outliers—the companies that don’t fit neat categories or follow traditional playbooks. This contrarian approach has found its latest expression in Amsterdam. henQ, the Dutch venture capital firm, has successfully closed its latest fund at €67.57 million, specifically targeting what they call “the odd ones out”—unconventional startups that other investors might overlook. The fund represents a bold statement in an increasingly homogenised venture landscape, where pattern recognition often trumps genuine innovation. For European founders building something truly different, this couldn’t come at a better time. The continent’s startup ecosystem has matured significantly, but with that maturity has come a certain conservatism amongst investors. henQ’s approach offers a refreshing alternative for entrepreneurs whose ventures don’t tick the usual boxes. Venture fund strategy targets overlooked opportunities henQ’s investment thesis centres on a fundamental belief that the most interesting opportunities often lie where others aren’t looking. The Dutch VC has built its reputation by backing companies that challenge conventional wisdom—startups that might be too early, too niche, or simply too unconventional for traditional funds. The €67.57 million fund positions henQ to make meaningful investments in companies across Europe, with particular focus on early-stage ventures that demonstrate genuine innovation rather than incremental improvements. Unlike many European VCs who increasingly mimic Silicon Valley investment patterns, henQ deliberately charts its own course. “We’re not interested in the obvious deals,” explains the fund’s approach to portfolio construction. “Our sweet spot is finding exceptional founders who are solving problems in ways that others dismiss as too risky or too different. These are often the investments that generate the most significant returns.” The fund’s strategy resonates particularly well within the Dutch tech ecosystem, where pragmatism and innovation have long coexisted. Amsterdam’s startup scene has produced numerous success stories by taking unconventional approaches to traditional problems, from Adyen’s unique payment processing architecture to Booking.com’s contrarian travel booking model. European market positioning and investment focus The timing of henQ’s fund closure reflects broader shifts in European venture capital. As the market has become more competitive, funds are increasingly differentiating themselves through specialized investment theses rather than generalist approaches. henQ’s focus on unconventional startups represents a calculated bet that the next wave of European unicorns will emerge from unexpected directions. The fund’s European focus is particularly strategic given the continent’s regulatory environment. EU frameworks like GDPR and the upcoming AI Act often favour companies that build privacy and compliance into their core architecture from day one—precisely the kind of foundational thinking that characterises henQ’s target investments. With this new fund, henQ can back companies across their growth journey, from pre-seed through Series A stages. The approach allows them to maintain conviction in their portfolio companies even when other investors might hesitate to follow on. This patient capital approach aligns well with European startup timelines, which often require longer development cycles than their US counterparts. The €67.57 million fund signals confidence in Europe’s capacity to generate genuine innovation beyond the well-trodden paths of fintech and SaaS. For European entrepreneurs building something genuinely different, henQ’s contrarian approach offers both capital and validation that unconventional thinking still has a place in venture capital.

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