Coronavirus has definitely impacted businesses yet there are multiple companies that are doing their best. As we previously reported, VCs are still looking for prospective companies to invest in. One such notably rising Venture Capital is henQ, which invests from pre-seed to Series A in B2B software startups. The VC has hit a new milestone with its fourth fund, henQ 4, with the first close of €70 million. With the announcement, one can expect initial fundings to range between €500,000 to €3.5 million.
henQ 4 launches with a first close of €70M
The VC henQ has launched its fourth fund with a first close of a whopping €70 million. This is quite a notable jump from the €48 million first close of the company’s previous fund, henQ 3. With this funding, the main focus by henQ will still be on leading pre-seed up to Series A rounds in B2B software companies across Europe.
henQ 4 will be different from the company’s previous funds. With henQ 3, the VC started focussing on international investments. Majority of deals with henQ4 are expected to happen outside the Netherlands, with a strong focus on Benelux, Nordics and the Baltics. henQ also developed its own in-house software to discover and track startups before others. The software is said to utilise some digital signals, enabling the company to increase its coverage and hit rate without having a local presence in every country.
Meet the new henQ partner team!
With the launch of henQ 4, the company is also introducing its new partner team. Jan Andriessen, Mick Mackaay and Jelmer de Jong are the new generation of partners that are working with the co-founder Coen van Duiven. Not only did Duvien lead investments in the fund returners of henQ’s first two funds, but is also currently on the board of Mews Systems.
Working remotely for successful deals
henQ takes pride in being a fully remote VC. There are no offices and the team works from different locations and it is also closing deals remotely. “Working remotely also enables us to be wherever we need to be. Remote doesn’t have to be from home, but for us it means that we can work from anywhere. Since we are active across Europe, not being tied to a location (before COVID-19 that was) means that we often work a week from Stockholm, followed by a week in London, for example, and work there with our portfolio companies or have longer, in-depth meetings with new startups.” the company states in a media release.
Working remotely not only enables henQ to work faster but it is said to enable one to invest more effectively and objectively. As per henQ, this happens because the investment decisions are based on data and actions rather than “beer-shared anecdotes creating personal biases,” which creates a more levelled playing field. henQ believes that there is a new generation of founders and VCs that are more interested in trust created on the basis of facts rather than “steak meal” deal dances.
henQ’s increasing portfolio of successful investments
Ever since starting their first fund in 2005, henQ has been focused on investing from pre-seed up to Series A in B2B software companies. One of the first investments the company made with its first fund was in Mendix, which was eventually acquired by Lightspeed for over $700 million. In henQ 2, they invested in SEOshop and saw early success as it was acquired by Lightspeed.
Fast forward to henQ 3, the firm invested in 19 companies that showcased a 70% graduation rate, which means they raised a follow-on round with external investors after a seed round from henQ. Some of the notable companies from henQ 3 include ZIVVER, SendCloud, Mews Systems, Impraise, Aidence, among others.
It is worth noting that henQ is a fund for B2B software founders, by B2B software founders. About half of the €70 million first close for henQ 4 comes from LPs that are former successful B2B software entrepreneurs. WIth motivation to take on an active mentoring role for the startups henQ invests in, they are always willing to share their knowledge and expertise with the founders. Among the company’s LP’s one will find some of the most experienced founders the company itself previously invested in.
Image credits: henQ