Danish VC firm byFounders announces launch of Fund III to back early-stage startups

Copenhagen’s VC firm byFounders has announced the launch of its third fund to continue backing early-stage startups.

Copenhagen-based venture capital firm byFounders has announced the launch of byFounders Fund III. The announcement was made by the VC firm on LinkedIn.

Founded in 2017, byFounders was established to build a founder-first fund in the New Nordics. Since then, it has expanded its portfolio and extended its reach beyond the region.

Fund III marks the next stage of this development. The firm states that lessons from its previous funds will guide its approach to working with the next generation of founders.

“Our unique power tool is the byFounders Collective, a group of exceptional unicorn founders and operators who actively share their knowledge and experience to help our portfolio companies succeed. With Fund III, we welcome new Collective members (soon to be announced), making this community stronger than ever,” mentions byFounders.

The firm also acknowledges the role of its limited partners (LPs), some of whom have been involved since the first fund. With Fund III, byFounders continues existing partnerships and adds new LPs from outside the region.

Through the new fund, byFounders aims to continue supporting early-stage startups and advancing its mission in the venture capital industry.

Brief about byFounders

byFounders is a venture capital firm that invests in early-stage technology companies. The firm focuses on pre-seed and seed stages and often acts as the first investor. Typical investment tickets range from €500K to €4M. Each year, byFounders makes about 8 to 15 new investments.

The firm describes itself as community-powered, with a network that includes portfolio founders, the core investment team, and the byFounders Collective. 

The Collective consists of more than 35 founders, operators, and angel investors from the New Nordics who support portfolio companies by advising on strategy, coaching, facilitating access to networks, and sometimes representing byFounders on company boards.

Collective members also help identify and evaluate investment opportunities and, in many cases, invest in byFounders funds or alongside the firm.

In terms of investment philosophy, byFounders practices impact-aware investing. This means backing founders who integrate ESG considerations into their companies and supporting startups whose products or services contribute to positive social or environmental outcomes.