Concentric launches second fund for European start-ups

The pan-European fund will invest between £400,000 and £1.3m in post-product stage software businesses

Pan-European venture capital firm Concentric has launched its second fund, Concentric 02.

The London and Copenhagen based firm will invest at seed stage upwards, with a focus on software start-ups in the financial services, logistics, real estate, industrial software and mobility sectors.

Concentric 02 will make initial investments of between €500,000 (£430,000) and €1.5m (£1.3m), investing primarily in European start-ups and founders, with a portion allocated to emerging market businesses.

The total figure raised for the fund was undisclosed but starts with an underlying portfolio of seven investments.

The previous Concentric 01 fund closed in 2018 and the VC now manages a total of more than €100m (£87m) in assets across its different venture strategies.

The portfolio of 45 investments, which includes Superscript, Merama, BVNK, Frontier Car Group and Huckletree, has collectively raised more than €800m (£694m) in follow on capital, and achieved six exits so far.

>See also: Future Energy Ventures launches €250m climate tech fund

Concentric managing partner Denis Shafranik said: “The European tech scene underwent a tectonic shift in the last decade, and there is now a wealth of talent, capital, and market demand for top innovative businesses.

“Despite recent market turbulence, the quality of entrepreneurs and business model maturity is immeasurably stronger than in previous downturns, and European companies remain capital efficient versus their global peers.

“VCs have plenty of dry powder to deploy and with valuations corrected to healthy levels, there is a strong opportunity to back top founders and business models. Good businesses will continue to succeed.”

Concentric partner Kjartan Rist added: “At a time when scaling businesses is becoming more challenging, those firms that return to venture capital ‘craftsmanship’ will prevail, with a focus on the fundamentals of strong analysis, due diligence, and providing hands-on support to founders.

“Unlike ‘term-sheet assembly lines’, we offer real value to our portfolio through our activist venture approach and close involvement in the start-up community. We aim to drive opportunity, innovation and scale, by building active personal relationships, maximizing our diverse network of experts, and always going the extra mile for our partners.”

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Dom Walbanke

Dom Walbanke

Dom is a feature writer for Growth Business and Small Business, focused on matters concerning start-ups and scale-ups. He has also been published in the Independent, FourFourTwo magazine and various lifestyle...

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