Seedcamp, a prominent European venture capital firm, has closed $320 million across two new funds, its largest raise in nearly 20 years, as reported by Startup Fortune. The $320 million capital infusion signals a definitive market shift towards physical AI and robotics startup venture funding in 2026. The firm's new investment thesis focuses on tangible, real-world deep tech, including robotics and hardware.
However, Seedcamp achieved its largest fundraise in two decades only to dedicate substantial capital to physical AI. This sector has historically been challenging and capital-intensive for early-stage investors, demanding longer development cycles and higher burn rates.
Early-stage investment in physical AI and robotics is poised for significant acceleration, potentially reshaping the European startup landscape and attracting more US market attention.
How Seedcamp Structures Its Early-Stage and Growth Investments
- Seedcamp raised €279 million to launch Fund VII and invest in new global companies, according to bebeez. This figure contrasts with the $320 million reported by Startup Fortune, likely due to currency conversion rates at the time of reporting.
- €192 million of the new capital is allocated for Seedcamp VII, the first check fund, according to bebeez.
- An additional €87 million is allocated for the Select fund, which focuses on backing portfolio winners as they scale, according to bebeez.
- Seedcamp VII, the flagship fund, will invest up to $1.3 million in initial checks and expects to back about 35 companies annually, according to Startup Fortune.
The strategic allocation of €192 million for Seedcamp VII's initial checks and €87 million for follow-on investments in the Select fund demonstrates a sophisticated understanding that physical AI startups require sustained, substantial capital beyond the seed stage, according to bebeez. This approach challenges the traditional quick-exit VC model.
