Ex-Google Moonshot X Advisor Launches €50 Million Cloudberry Ventures DeepTech Fund Amid “SaaSpocalypse”

Engaging Introduction

In a bold move set to shake up the European DeepTech landscape, Mahir Sahin, a former senior executive at Google and ex-lead advisor at Alphabet's Moonshot X Factory, has announced the launch of a €50 million fund through his London-based venture firm, Cloudberry Ventures. As the tech world grapples with what Sahin calls the “SaaSpocalypse,” this fund aims to address critical challenges in AI and computing infrastructure, paving the way for sustainable technological advancement.

Main Body

Cloudberry Ventures’ new fund is strategically targeting the Seed to Series A stages, with individual investments ranging from €1 to €2 million. The focus areas include industrial infrastructure, compute infrastructure, and financial infrastructure, all crucial components for overcoming current AI limitations. Esteemed advisors and limited partners in this venture include notable figures such as Mark Bennett, VP of Google Partnerships, and Neil Ventura, formerly of De Beers.

Sahin warns of the unsustainable trajectory of current AI developments, emphasizing the importance of investing in the foundational deep tech that powers AI. “The physical chip was the deep tech big bang for the software era,” Sahin notes. “We must prioritize the physical substrate to prevent the AI project from hitting a wall.”

Cloudberry Ventures is determined to counteract the “IP strip-mining” of European innovation. With US investors often acquiring European DeepTech at significant discounts, Sahin highlights the need for investors fluent in both science and scale to support Europe’s innovators.

The launch of the fund comes amidst significant bottlenecks faced by leading cloud providers, with Sahin asserting that the “SaaSpocalypse” is upon us. He stresses the urgent need for cleaner, scalable materials and intelligent AI technologies to drive future economic growth.

Insights / Analysis

The implications of this fund for startups and investors are profound. By focusing on the three pillars of industrial, compute, and financial infrastructure, Cloudberry Ventures is poised to support the next wave of DeepTech innovation. This strategic investment approach not only addresses the current bottlenecks but also positions Europe as a leader in global tech advancements.

Sahin’s previous success with Cloudberry Pioneer Investments, which achieved an 86% Gross IRR and a 2.4x MOIC in just 16 months, underscores the potential impact of this new venture. By backing companies like Quantum Brilliance, which is developing the world’s largest quantum production line, Cloudberry has already demonstrated its ability to foster groundbreaking innovations.

Conclusion

Cloudberry Ventures is setting a new standard for DeepTech investment. By combining patient capital with systems thinking and operational expertise, the firm is uniquely equipped to transform scientific breakthroughs into global success stories. As Julia Holze, founder of Cosmic Gold and Venture Partner at Cloudberry Ventures, aptly states, “Europe produces world-class science and IP, yet comparatively few ventures are built from it.” Cloudberry Ventures aims to change that narrative, offering the tools and support necessary for deep tech founders to thrive from lab to market.

Source: EU-Startups