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

Jan de Vries · 2026-05-27

London-based early-stage investment firm Transition Ventures has closed its $150 million Fund II, bringing its total assets under management to over $300 million. The firm's team has collectively founded companies worth more than $15 billion across software, hardware, and DeepTech sectors. David Helgason, co-founder of Transition Ventures and founder/former CEO of Unity, said: "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." ### A Broader Trend in European Venture Capital Transition Ventures' Fund II is part of a larger 2026 pattern where specialist European venture funds are raising capital for DeepTech, AI, climate, energy, industrial systems, and research-led company formation. The UK is especially active, with fund announcements from London-based 2150, Lansdowne Partners, Eka Ventures, and Passion Capital, all targeting adjacent early-stage, climate, AI, sustainability, or research-commercialization 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 $1.2 billion disclosed across similar fund vehicles in 2026. "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.  ### Investment Focus and Team Founded in 2021, Transition invests from inception to Series A in companies leveraging technology in a rapidly changing world. This includes 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 (with over $2 billion in annual revenue), Ari Helgason (former entrepreneur, Index Ventures), Kristian Branaes (CPP, Atomico), Clara Ricard (Balderton), and David Pacak (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 Portfolio Companies - **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 $1 billion. Transition invested in the first round alongside LocalGlobe, and the company has since raised over $220 million. - **Applied Atomics**: Developing small modular nuclear power plants designed to supply electricity to data centers and large industrial users. Founded by former SpaceX engineers, they use reactor technology to deliver reliable, clean power directly where it's needed. - **Seneca**: A full-stack physical AI solution for wildfire suppression. Their autonomous drones can reach fires in 10 minutes, much faster than conventional solutions, while also being materially cheaper. Transition invested in Seneca's first venture round, and 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 has grown revenue by more than 30x. The company has now raised over $120 million.