HV Capital, formerly HV Holtzbrinck Ventures, has previously invested in internet and technology companies. It is touted to be one of the leading early-stage and growth investors in Europe. After investing in around 200 companies including Delivery Hero, FlixMobility, SumUp, and Zalando among others, HV Capital has now launched a new fund.
HV Capital Fund VIII
HV Capital has raised a new €535M fund to support up-and-coming digital market leaders from Germany and Europe. With the HV Capital Fund VIII, the assets under management come to over €1.7B. It intends to broaden its scope with the investment.
While the core approach remains the same, the new fund lets HV Capital invest in later rounds (Series B or Series C) in promising companies that aren’t in its portfolio.
“Just how positively our commitment has been received within the startup scene is demonstrated by the fact that around 50 of the leading founders from the HV portfolio and network, including founders of Zalando, Flixbus, and Trivago, are contributing a total of €20M to our new fund. The trust the scene has placed in us naturally gives us great support,” comments Rainer Märkle, General Partner at HV Capital.
Focus on growth investments
HV Capital’s strategy with the new Fund VIII is to lead early rounds of investment in startups, typically Seed or Series A.
According to the firm, it will continue to support portfolio companies with follow-on investments, up to €50M per startup. In addition, HV Capital will use the new oversubscribed fund to make new investments in Series B or Series C rounds in companies that are already in the growth phase.
“Fund VIII also enables us to make new investments in Series B and C rounds with investment sums ranging from €7 to 25M,” says Dr. Christian Saller, General Partner at HV Capital. He will be heading the company’s growth investment team.
Gets rebranded after two decades
Founded in 2000 by Holtzbrinck Publishing Group as a corporate VC, the investment company has been rebranded HV Capital. The new brand name is believed to highlight the company’s independent operations since 2010.
The company supports startups with capital between €500,000 and €50M. It claims to have repaid more than €1.1B to investors – a return of around 36 percent annually.
Innovative companies in its portfolio
The portfolio of HV Capital comprises successful consumer brands including Delivery Hero and Zalando. Besides these, it has invested in unicorns including Cabify, Flixbus, and SumUp. The other successful companies in its portfolio include B2B businesses such as sennder, scoutbee, and Solarisbank and B2C companies such as Tourlane, Urban Sports Club, and Depop among others.
According to the firm, the companies financed by HV Capital over the past twenty years are now worth a total of around €75B and the value of the investment portfolio is three times higher than the capital invested.
Stock photo from BlackAkaliko/Shutterstock
01
From port to startup fort: How Lars Crama is ‘Making it Happen’ in Rotterdam