London-based VC Seedcamp has launched another VC fund, Seedcamp Fund V – its biggest and most ambitious fund to date, claims the firm. This £78M (nearly €88M) fund will be used for pre-seed and seed-stage investments.
This 50% oversubscribed Fund V was backed by 80 of its founders and 100 LPs including British Patient Capital, Legal & General, TIFF, LGT, Vintage IP, Isomer Capital, OMERS. VC backers include Index, Sequoia, Underscore VC, Northzone, Atomico, and Draper Esprit. Angel backers include Taavet Hinrikus (TransferWise), Daniel Dines (UiPath), David Helgason (Nordic Makers/Unity), and Shakil Khan (Spotify).
“Like many, we’ve had more than our fair share of issues when it comes to fundraising: economic recessions, Brexit, global pandemics – you name it, we’ve been through it. That’s why Fund V, more than 50% oversubscribed and raised in the midst of COVID-19, feels all the more special. It’s the first time we feel we genuinely haven’t had to fight tooth and nail to explain to investors why, by now, we know what we’re doing,” the VC firm says in a blog post.
Here’s the fundraising pitch deck used for Seedcamp Fund V
Seedcamp was founded in 2007 by Reshma Sohoni with Saul Klein and a number of European investors, to help European startups bridge the gap between knowledge and capital. Its managing partners are Sohoni and Carlos Espinal.
According to the VC firm, when it participates in an active round led by another investor, it aims to participate in seed rounds that are on average around £3M (nearly €3.4M) or less with an investment of up to £500K (approx €564K). At a stretch, it may invest in a larger round but that’s more an exception to the rule.
It typically leads a pre-seed round with an investment of around £200K (nearly €225K), usually in exchange for an ownership stake between 6% – 7%. Traditionally, these pre-seed rounds range in size from £400-750K (€451K-€846K).
As of November 2020, Seedcamp-backed companies have gone on to raise over $4B+(approx €3.4B+) in follow-on funding. According to the firm, it has over 360 startups in its portfolio, including cloud-based decacorn UiPath, Revolut, Transferwise, Pointy (acquired by Google), wefox, Ezra, viz.ai, Stupefix (acquired by GoPro), and Hopin.
Image credit: Seedcamp