Transition Ventures Closes €128 Million Fund II, Expanding Investment in DeepTech and AI
Transition Ventures, a pioneering early-stage investment company based in London, has recently announced the successful closing of its €128 million ($150 million) Fund II. This milestone elevates the company’s total assets under management to over €257 million ($300 million).
The team at Transition Ventures has a remarkable track record, having founded companies with a collective valuation exceeding €12 billion ($15 billion) across various sectors including software, hardware, and DeepTech. This robust foundation showcases the expertise and experience of the team, underscoring their commitment to nurturing transformative technologies.
David Helgason on Supporting Ambitious Founders
David Helgason, co-founder of Transition Ventures and the founder and former CEO of Unity, emphasizes the importance of supporting founders who aspire to leave a lasting impact. “Ambitious founders don’t just want to build a great company: they want to create something that will matter for generations to come. The world needs these companies more than ever. The question is whether they get the right support to succeed,” he asserts.
Part of a Broader European Startups 2026 Model
Transition Ventures’ Fund II is a crucial component of the European Startups 2026 model, which includes specialist European venture capital funds raising capital for sectors such as DeepTech, AI, climate, energy, industrial systems, and research-led business creation.
The UK plays a significant role in this ecosystem. By 2026, London-based firms like 2150, Lansdowne Partners, Eka Ventures, and Passion Capital have announced funds focused on adjacent segments such as start-ups, climate, AI, sustainability, or research commercialization.
Internationally, similar initiatives are underway with The Footprint Firm’s climate and DeepTech fund in Denmark, Montis VC’s AI-focused energy fund in Poland, 360 Capital’s DeepTech transfer fund in France, and Vanagon Ventures’ pre-Seed DeepTech and AI fund in Germany.
This trend highlights the significance of Transition Ventures’ new fund, with over €1 billion disclosed across similar or adjacent fund vehicles by 2026, as reported by our sources.
Challenging Traditional Venture Capital Models
“At Transition, we believe that the classic venture capital model of supporting incremental, incremental improvements has failed. Founders should not have to choose between a venture capital fund that has the capabilities to help them scale and a fund that aligns with their values,” David Helgason adds.
Founded in 2021, Transition Ventures invests from inception through Series A in companies that leverage technology in a rapidly evolving world. Their focus areas include energy systems powering AI, robotics for industrial efficiency, and next-generation solutions for refining critical minerals.
A Diverse and Experienced Team
Transition Ventures operates across Europe and the United States with a team comprising David Helgason, Ari Helgason (former entrepreneur, Index Ventures), Kristian Branaes (CPP, Atomico), Clara Ricard (Balderton), and David Pacák (Earlybird, Picus Capital). The company is driven by the belief that the most valuable businesses of the future will emerge at the intersection of AI and the physical world, employing the latest technologies to create cleaner and more efficient alternatives.
Notable Portfolio Companies
- Olix: Specializing in photonics-based hardware that offers enhanced performance and power efficiency compared to existing semiconductors, Olix has attained a valuation of €858 million ($1 billion). Transition’s initial investment, alongside LocalGlobe, has helped the company raise over €188 million ($220 million).
- Applied Atomic: This company develops small, modular nuclear power plants designed to provide electricity to data centers and large industrial users. Founded by former SpaceX engineers, Applied Atomic’s reactor technology aims to deliver reliable, clean energy directly where it is needed.
- Seneca: Offering a comprehensive physics AI solution for wildfire suppression, Seneca’s autonomous drones can reach fires in 10 minutes, significantly faster and cheaper than conventional methods. Transition participated in the company’s first venture capital round, which has now raised €51 million ($60 million).
- To the Top: A platform for reconditioned and used electric bikes, To the Top has increased its revenue by over 30 times since Transition’s investment in spring 2022. The company has raised more than €103 million ($120 million) to date.
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