Walden Catalyst Launches $550M Deep Tech Fund

Walden Catalyst Launches $550 Million Fund for Deep Tech Investment

For the last two decades, a discernible trend of capital withdrawal from deep tech has been observed – those fundamental scientific and technological advancements that underpin truly transformative businesses, according to Walden Catalyst.

Fund Focus and Philosophy

The venture capital firm operates on the premise that data serves as the essential “fuel” and artificial intelligence functions as the driving “engine” for reshaping how individuals live, work, and interact.

According to managing partner Young Sohn, the fund was established by Lip-Bu Tan and Young Sohn to concentrate investments in nascent deep tech enterprises. Specific areas of interest include big data, AI, semiconductors, cloud computing, and digital biology.

Fund Details and Limited Partners

Walden Catalyst recently announced the successful closing of its $550 million fund, exceeding its initial target. The identities of the fund’s limited partners have not been publicly disclosed.

Both Sohn and Tan possess extensive and successful backgrounds within the semiconductor, cloud, and electronics sectors. They have a history of early-stage investments in prominent technology companies such as Zoom, Inphi, Berkeley Lights, Habana, and Nuvia.

Legacy and Geographic Focus

“While Walden Catalyst is a newly formed fund, originating in early 2021, it benefits from a robust foundation built upon the legacies of Walden International and the Samsung Catalyst Fund,” explained Sohn, formerly corporate president and chief strategy officer at Samsung Electronics.

Tan is the founder and chairman of Walden International.

The firm’s investment strategy prioritizes the United States, Europe, and Israel, recognizing these regions as consistent sources of innovation in deep tech. Furthermore, the partners maintain established networks within these countries, cultivated through decades of investment in the deep tech industries, facilitating the identification of promising ideas and attracting exceptional entrepreneurs, Sohn added.

Portfolio and Investment Size

To date, Walden Catalyst has made investments in six deep tech startups: three located in the U.S., two in Israel, and one within the European Union.

Portfolio companies include Speedata, MindsDB, and AI21 Labs, alongside three additional companies currently operating in stealth mode. Initial investment amounts typically range from several million dollars up to $25 million per funding round.

The Power of Data

“Data provides crucial insights; it constructs narratives that inform and illuminate,” Sohn stated. “The global volume of data is projected to double every two years, yet only approximately 2% of this data is currently analyzed, indicating significant potential for extracting valuable knowledge. We are enthusiastic about collaborating with the next generation of deep tech entrepreneurs across the U.S., Europe, and Israel, who are capitalizing on this data surge and poised to revolutionize the world.”

Experienced Investment Team

The firm’s team includes four additional partners – Shankar Chandran, Roni Hefetz, Francis Ho, and Andrew Kau – who collectively bring decades of experience in deep tech investments and successful exits.

Walden Catalyst is dedicated to utilizing its operational expertise and investment acumen to accelerate the growth and innovation of early-stage entrepreneurs as they develop the next generation of businesses.

Commitment to Entrepreneurs

The company firmly believes that entrepreneurs are the driving force behind economic expansion and innovation.

“We anticipate forging partnerships with the next cohort of industry leaders, empowering them to unlock innovation and expedite growth. Entrepreneurs are the cornerstone of our future, and Walden Catalyst was created to participate in this journey and support the remarkable breakthroughs that lie ahead,” Tan commented.

Partnership with Extreme Tech Challenge

Walden Catalyst maintains a strong relationship with the Extreme Tech Challenge (XTC), a startup competition and ecosystem focused on entrepreneurs tackling global challenges aligned with the UN Sustainable Development Goals. The firm shares XTC’s commitment to identifying disruptive startups with the potential for significant scale and positive global impact.