Transition Ventures Closes $150M Fund for AI and Physical World Startups

Jan de Vries · 2026-05-27

Transition Ventures, a London-based early-stage investment firm, just closed its second fund at $150 million. That brings their total assets under management to over $300 million. Not bad for a firm that only launched in 2021. ### A Team That Knows How to Build The team behind Transition has already founded companies worth over $15 billion across software, hardware, and DeepTech. That's not just talk — they've been in the trenches. David Helgason, co-founder of Transition and former CEO of Unity (which grew to over $2 billion in annual revenue), knows what it takes to scale a company from nothing to something massive. "Ambitious founders don't just want to build a great business: they want to create something that will matter for generations to come," Helgason says. "The world needs these companies more than ever. The question is whether they get the right backing to succeed."  ### Why This Fund Matters Right Now Transition's new fund is part of a bigger wave. Across Europe in 2026, we're seeing specialist venture funds raise serious capital for DeepTech, AI, climate tech, energy systems, and research-driven startups. The UK is especially hot right now — firms like 2150, Lansdowne Partners, Eka Ventures, and Passion Capital all announced funds in similar spaces this year. Outside the UK, the action is just as intense: - The Footprint Firm launched a climate and DeepTech fund in Denmark - Montis VC rolled out an AI-driven energy and IndustrialTech fund in Poland - 360 Capital started a DeepTech transfer fund in France - Vanagon Ventures opened a pre-Seed DeepTech and AI fund in Germany All told, we've tracked over $1.1 billion in disclosed capital across these adjacent funds in 2026 alone. That's a lot of money chasing big ideas.  ### A Different Kind of VC Transition isn't your typical venture firm. "At Transition, we believe that the classic VC model of backing more of the same, incremental improvements, has run out of road," Helgason adds. "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." They invest from the very beginning (inception) all the way through Series A. Their focus? Companies that use technology to tackle big, messy problems in the physical world — think energy systems that power AI, robotics for industrial efficiency, and new ways to refine critical minerals. The investment team spans Europe and the US. Besides David Helgason, you've got Ari Helgason (former entrepreneur, Index Ventures), Kristian Branaes (CPP, Atomico), Clara Ricard (Balderton), and David Pacak (Earlybird, Picus Capital). ### Portfolio Highlights Transition's bets are already paying off. Here are a few standout companies in their portfolio: - **Olix**: Builds photonics-based computing hardware that's a huge leap in performance and energy efficiency over traditional semiconductors. Now valued at $1 billion. Transition invested in the first round alongside LocalGlobe — the company has since raised over $220 million. - **Applied Atomics**: Develops small modular nuclear power plants for data centers and big industrial users. Founded by former SpaceX engineers, they're using reactor tech to deliver clean, reliable power right where it's needed. - **Seneca**: A full-stack physical AI solution for wildfire suppression. Their autonomous drones can reach fires in 10 minutes — way faster than conventional methods, and cheaper too. Transition invested in Seneca's first venture round; the company has now raised $60 million. - **Upway**: A platform for refurbished and pre-owned e-bikes. Since Transition invested in spring 2022, the company's revenue has grown more than 30x. They've now raised over $120 million. ### The Big Picture Transition Ventures believes the most important companies of the next few decades will sit at the intersection of AI and the physical world. They're betting that the next breakthroughs won't be just software — they'll be about replacing old, dirty systems with cleaner, smarter alternatives. With $150 million in fresh capital, they've got the firepower to back that vision.