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

Jan de Vries · 2026-05-27

Transition Ventures, a London-based early-stage investment firm, just announced the close of their $150 million Fund II. That brings their total assets under management to over $300 million. Not too shabby for a firm that's only been around since 2021. ### Who's Behind the Fund The team behind Transition Ventures has serious credentials. They've founded companies worth over $15 billion across software, hardware, and DeepTech. David Helgason, co-founder of Transition and former CEO of Unity (that's a $2 billion+ AR company), puts it this way: "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." ### What They Invest In Transition invests from inception to Series A. They're looking for companies that use tech in a rapidly changing world. Think energy systems powering AI, robotics for industrial efficiency, and next-gen solutions for critical minerals refining. The firm believes the most important companies of the next decades will be at the intersection of AI and the physical world. ### A Bigger Trend in European VC Transition's Fund II is part of a larger pattern in 2026. Specialist European venture funds are raising capital for DeepTech, AI, climate, energy, industrial systems, and research-led company formation. In the UK alone, you've got London-based 2150, Lansdowne Partners, Eka Ventures, and Passion Capital all making similar moves. Outside the UK, The Footprint Firm in Denmark, Montis VC in Poland, 360 Capital in France, and Vanagon Ventures in Germany are all raising funds in adjacent spaces. All told, we've seen more than $1.2 billion disclosed across similar fund vehicles in 2026. ### Notable Portfolio Companies Here are some of the companies Transition has backed: * **Olix**: Developing photonics-based computing hardware that's a huge leap in performance and energy efficiency over existing semiconductors. Now valued at $1 billion. Transition invested in the first round alongside LocalGlobe. The company has since raised over $220 million. * **Applied Atomics**: Building small modular nuclear power plants for data centers and large industrial users. Founded by former SpaceX engineers. They're using reactor technology to deliver reliable, clean 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 solutions, and at a much lower cost. 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 has grown revenue by more than 30x. They've now raised over $120 million. ### The Team The team invests across Europe and the US. It includes David Helgason (founder/ex-CEO of Unity), Ari Helgason (former entrepreneur, Index Ventures), Kristian Branaes (CPP, Atomico), Clara Ricard (Balderton), and David Pacak (Earlybird, Picus Capital). ### Why This Matters As David Helgason says, "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." Transition is betting big on founders who want to build something that matters for generations. And with $150 million in new capital, they've got the firepower to back that vision.