Zug, Switzerland: European venture capital firm redalpine has closed its early-stage fund, redalpine capital VIII (RAC VIII), at $250 million, with the fund oversubscribed.
The latest fundraise comes as the Switzerland-based investor marks 20 years of backing technology companies working at the intersection of software and science.
Headquartered in Zug, Switzerland, redalpine said RAC VIII is the latest addition to its investment platform, which supports European technology companies from Seed to IPO. With the latest fund close, redalpine now manages more than $1.4 billion in assets.
Founded in Zurich in 2006, redalpine has spent two decades investing in frontier technologies, including fusion energy, artificial intelligence (AI), robotics and biotechnology, often before these sectors became established venture capital themes.
The firm follows a science-led investment approach, with half of its investment team comprising trained scientists, including biologists, physicists and engineers.
This technical expertise enables redalpine to assess complex technologies and identify investment opportunities at their earliest stages.
Dr. Michael Sidler, Founding Partner at redalpine, said: “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.”
redalpine Sees AI Creating New Opportunities for European Technology Startups
Sebastian Becker, General Partner at redalpine, said artificial intelligence is increasingly levelling the playing field, shifting the competitive advantage towards companies that understand underlying science and complex technological challenges.
“AI is leveling 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,” Becker said.
The firm’s existing investment portfolio includes companies such as Proxima Fusion, Mistral AI, N26, Basecamp Research and microagi, along with more than 100 other businesses.
Since 2023, 11 of redalpine’s portfolio companies have exited, during a period when exits across the technology sector have remained scarce.
Meanwhile, companies backed by RAC VII, the firm’s previous early-stage fund, which closed in 2024, have collectively raised more than $1.1 billion in funding since then.
Francesco Sciortino, Co-Founder and CEO of Proxima Fusion, which is part of the RAC VII portfolio, said redalpine recognised the company’s potential early 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,” Sciortino said.
Three Initial Investments Announced for $250 Million RAC VIII Fund
The first investments from the investor’s new $250 million fund include three companies developing technologies across robotics, drug discovery and AI infrastructure.
These include:
- Enact Intelligence: Developing force intelligence technology for robotics.
- Helical: Building a virtual AI laboratory focused on reproducible drug discovery.
- Arlequin AI: Developing a new AI architecture to protect critical systems.
Through RAC VIII, redalpine plans to invest in approximately 20 early-stage companies across Europe.
The investment opportunities will be selected from a pipeline of more than 5,000 companies annually. The fund will primarily lead Seed and Series A funding rounds, with initial investment tickets ranging from $1 million to $15 million.
Aviva Investors, Flexstone Partners and KfW Back Latest Fund
RAC VIII has attracted investments from both existing and new limited partners (LPs), including Aviva Investors, Flexstone Partners and KfW.
Their participation reflects growing interest among European institutional investors in supporting local deeptech and frontier technology companies.
Apart from institutional investors, the fund has also received backing from entrepreneurs, executives with deep domain expertise and business owners. These investors are expected to provide valuable support to companies within redalpine’s portfolio.
Cynthia Chen, Head of Fintech at Aviva Investors, said: “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.”
redalpine Expands Investment Platform to Support Startups From Seed to IPO
redalpine started as a single early-stage venture capital fund and has since evolved into a multi-stage investment platform.
The expanded platform allows the firm to support founders throughout their business journeys, from initial funding rounds to scaling their companies into established global businesses.
The strategy also aligns with redalpine’s broader ambition to strengthen Europe’s capital ecosystem and ensure that a greater share of the value generated by local technology companies remains with European investors, including pension funds.
Rafael Hubatschek, Partner and Head of Investor Relations at redalpine, said: “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.”
