While the venture capital market has spent the last couple of years recalibrating, one thing is becoming increasingly clear: investors are still willing to write big cheques for European tech – as long as the technology is defensible, complex and built for the long term.
That’s the bet Elaia is making with its fifth Digital Venture Fund, DV5.
The Paris-based VC firm has announced a first close of €120 million, positioning the fund to back what it describes as “enduring, IP-driven ventures” across Europe. And in a climate where many investors are still cautious, a close of this size sends a fairly strong signal.
This isn’t just another European growth fund. Rather, it’s a deep-tech leaning vehicle designed to back companies that could define entire categories.
A €120m First Close, But With A Bigger Story Behind It
A first close at €120 million is notable on its own, but the wider message is arguably more important: institutional confidence in European venture capital isn’t gone, it’s just become more selective.
Elaia is leaning heavily into its existing reputation here. The firm has more than two decades of experience, and DV5 builds directly on the performance of its previous four Digital Venture funds.
That matters because, right now, fundraising isn’t about hype cycles or shiny decks. LPs want proof, a clear thesis an- teams that can survive multiple market eras — not just boom years.
Elaia’s positioning is essentially that it has already done this before, and DV5 is the next iteration of a strategy that has worked.
The Fund Thesis: Backing The “Hard Tech” Layer Of Europe
DV5’s focus is straightforward, but ambitious. Elaia says the fund will invest across early-stage rounds from Pre-Seed to Series B, with cheque sizes ranging from €1 million to €15 million. The target is B2B technology businesses across Europe, particularly those building foundational infrastructure and breakthrough applications.
This is an important detail, because it reflects where venture capital is increasingly moving: away from short-lived consumer trends and towards platforms and systems that underpin industries.
According to Elaia Managing Partner Pauline Roux, the firm has historically focused on “complex, high-impact technologies” including AI, cybersecurity, techbio, and industrial innovation. DV5 appears to be doubling down on that approach.
The implication is that Elaia is building a portfolio designed to last through cycles – companies that are harder to replicate and less dependent on marketing-led growth.
Why Investors Are Backing Elaia Again
The list of investors participating in DV5’s first close includes a mix of institutional names and long-term partners.
Elaia confirmed backing from Bpifrance, MACSF, BNP Paribas, SMABTP, Arundo Re and Groupe AG2R LA MONDIALE, among others.
Bpifrance’s involvement is particularly noteworthy given its role in France 2030, a major national initiative aimed at strengthening French and European technological competitiveness.
This blend of financial institutions, insurers, and government-linked capital suggests that DV5 is not just seen as a high-risk startup fund but as part of a wider European innovation strategy.
In other words, investors aren’t only chasing returns —-they’re also backing the infrastructure of the future.
First Investment: Mimic Robotics And The Rise Of “Physical AI”
DV5’s first investment has already been announce – Mimic Robotics, a Zurich-based company described as a robotics “physical AI” startup.
While the PR doesn’t go into product specifics, the selection is symbolic. Robotics sits at the intersection of AI, industrial innovation, and real-world infrastructure – all areas where Europe has the talent base to compete globally.
Elaia is clearly signalling that it wants exposure to the next wave of AI, beyond chatbots and software productivity tools and into systems that operate in the physical world.
This also reinforces the idea that DV5 isn’t chasing trends. It’s targeting technical breakthroughs that could take years to scale, but could ultimately become category-defining.
A European VC Market That’s Becoming More Serious
In many ways, DV5 reflects a broader shift in the European venture landscape.
The era of easy capital and inflated valuations has faded, but what’s replacing it isn’t collapse – it’s discipline. Funds like DV5 are being built around a more traditional venture mindset: invest early, stay close to the founders and focus on companies with genuine engineering depth.
Elaia also emphasises its hands-on approach, with the fund team supporting portfolio companies through product-market readiness and execution, not just fundraising milestones.
That matters, because deep tech companies often don’t fail due to lack of innovation – they fail because scaling complex technology into real-world adoption is brutally difficult. Elaia’s pitch is that it knows how to bridge that gap.
So, Is Europe Finally Investing In Itself?
Xavier Lazarus, CEO and Co-Founder of Elaia, framed the strategy as a long-term play – backing the technologies that “underpin entire sectors.”
It’s a simple idea, but a powerful one. If Europe wants to compete globally in AI, cybersecurity, quantum, robotics and industrial systems, it needs capital that is willing to be patient.
DV5’s launch suggests that patient capital is still available, and that Europe’s tech future is increasingly being built by investors who are thinking in decades, not quarters.
And in a market where everyone is chasing the next breakout AI product, Elaia is making a slightly different bet – the companies that win might not be the loudest ones. They might be the ones building the foundations.
