Transition Ventures raises €128 million Fund II for early-stage companies at the intersection of AI and the physical world

May 27, 2026 - 20:00

Transition Ventures, a London-based early stage investment firm, is today announcing they have closed their €128 million ($150 million) Fund II, taking its AUM to over €257 million ($300 million).

According to the firm, their team has founded companies worth over €12 billion ($15 billion) across software, hardware and DeepTech.

David Helgason, co-founder of Transition Ventures and founder/former CEO of Unity says: “Ambitious founders don’t just want to build a great business: they want to create something that will matter for generations to come. The world needs these companies more than ever. The question is whether they get the right backing to succeed.

Transition Ventures’ Fund II sits within a broader 2026 EU-Startups pattern of specialist European venture funds raising capital for DeepTech, AI, climate, energy, industrial systems and research-led company formation.

The UK is especially relevant: 2026 saw fund announcements from London-based 2150, Lansdowne Partners, Eka Ventures and Passion Capital, all in adjacent early-stage, climate, AI, sustainability or research-commercialisation segments.

Outside the UK, comparable activity includes The Footprint Firm’s climate and DeepTech fund in Denmark, Montis VC’s AI-driven energy and IndustrialTech fund in Poland, 360 Capital’s DeepTech transfer fund in France, and Vanagon Ventures’ pre-Seed DeepTech and AI fund in Germany.

Based on this activity, the capital formation context around Transition’s new fund is substantial, with more than €1 billion disclosed across similar or adjacent fund vehicles in 2026 as per our coverage.

“At Transition, we believe that the classic VC model of backing more of the same, incremental improvements, has run out of road. Founders shouldn’t have to choose between a venture fund that has the capabilities to help them scale and a fund that is aligned with their values,” adds David.

Founded in 2021, Transition invests from inception to Series A in companies leveraging tech in a rapidly changing world; from the energy systems powering AI, robotics for industrial efficiency, and next-generation solutions for critical minerals refining.

The team invests across Europe and the US and consists of David Helgason, founder/ex-CEO of Unity ($2 billion+ AR), Ari Helgason (former entrepreneur, Index Ventures), Kristian Branaes (CPP, Atomico), Clara Ricard (Balderton) and David Pacák (Earlybird, Picus Capital).

The firm is founded on the belief that the most important companies of the next decades will be built at the intersection of AI and the physical world, leveraging the latest technologies to replace legacy systems with cleaner and more efficient alternatives.

Notable companies in their portfolio include:

Olix: Developing photonics-based computing hardware that delivers a step change in performance and energy efficiency relative to existing semiconductors, Olix is now valued at €858 million ($1 billion). Transition invested in the first round alongside LocalGlobe – the company has since gone on to raise over €188 million ($220 million).
Applied Atomics is developing small modular nuclear power plants designed to supply electricity to data centers and large industrial users. Founded by former SpaceX engineers, they are using reactor technology to deliver reliable, clean power directly where it’s needed.
Seneca: Full-stack physical AI solution for wildfire suppression. Their autonomous drones can reach fires in 10 minutes, much faster than what’s reportedly possible with conventional solutions, whilst also being materially cheaper. Transition invested in Seneca’s first venture round. The company has now raised €51 million ($60 million).
Upway: A platform for refurbished and pre-owned e-bikes. Since Transition invested in the spring of 2022, the company has grown revenue by more than 30x. The company has now raised over €103 million ($120 million).

The post Transition Ventures raises €128 million Fund II for early-stage companies at the intersection of AI and the physical world appeared first on EU-Startups.