Amsterdam-based Arches Capital launches Fund I; announces first close of €17.5M

Amsterdam-based Arches Capital, an angel syndicate of 100 business angels on Tuesday, announced the launch of Fund I with the first close of €17.5M, targeting a total of €20M.

The fund was backed by a group of angels in the syndicate — Archangels and other investors, including informal investors and family offices. The fund complements the Angel syndicate and invests jointly, as a ‘side-car fund’. 

With this fund, Arches Capital aims to make 20 to 25 new investments and participate in the follow-on rounds. The company made its first investments, including TheyDo, Wezoo, Appjection, Costperform, and Runnr.ai. 

Arches will invest in B2B software entrepreneurs with a ticket size of €250K up to €1M in initial rounds.

Arches Capital: Bridging the gap between VCs and angels 

Led by Frank Appeldoorn, Diederik Stolk, and Lotte Smit van Ditshuizen, Arches Capital is a group of over 100 business angels that invests in high-growth potential startups and scale-up companies. 

The group claims to bridge the gap between formal and informal investors by offering professional investment strategies, personalised support, and mentorship. 

Appeldoorn says, “We are better positioned to support our portfolio companies from the first investment to a successful exit.” 

Arches Capital invests in early-stage companies that are ready to scale fast. The company invests not only in the first round but also continues investing in subsequent follow-on rounds.

Notably, more than half of the startups Arches invested in have attracted subsequent follow-on rounds.

The group focuses on supporting entrepreneurs building B2B software companies, guiding them from initial investment to successful exits, and accelerating their growth. 

Arches Capital focuses on B2B (or B2B2C) software companies in the Benelux region. 

“However, we would never turn down an awesome team with a great product,” says the firm.

The VC invests in return for equity (minority share) in early-stage and scaling companies with well-balanced teams with a compelling and differentiating product.

“Because our Angels have diverse backgrounds, we can invest in diverse sectors within the B2B Software space, as you can see in our portfolio,” says the company.