The creation of DTS3 reflects the growing momentum around the concept of European dynamism, a response to the "American dynamism" nickname coined by a16z. Elaia will be the French ambassador of the European Dynamism tech tour, which aims to attract American investors to Europe. The firm's research partnerships leverage France's expertise in mathematics, which has been beneficial to the country's tech ecosystem with the rise of generative AI. The fund has also received support from French public sector investment bank Bpifrance and the Tibi initiative, which encourages institutional investors to back venture capital funds.
Key takeaways:
- Elaia's third deep tech seed fund, DTS3, is set to reach €120 million by early 2025, double the size of the two previous funds.
- The fund will invest in around 40 B2B deep tech startups, with a focus on computing, industry and life science sectors.
- Elaia has built strong relationships with research institutions, providing a solid source of deal flow and sometimes exclusive access to projects.
- French public sector investment bank Bpifrance is a major investor in DTS3, and along with the Tibi initiative, has helped to boost the French tech ecosystem.