Backed VC launches “community-driven” €30m seed-stage fund
UK start-ups including Jukedeck, Technology Will Save Us and Lystable have already secured investment from the pan-European fund
UK firms are set to benefit from a new €30m venture capital (VC) seed-stage fund that shares its profits with everyone who refers a company it goes on to support.
Founded by Andre de Haes, formerly of Andreessen Horowitz and Index Ventures, Backed VC will focus on investing in sectors where Europe leads Silicon Valley including fashion, music, gaming and financial technology (fintech).
The seed-stage fund has already invested in a number of UK start-ups including music video streaming service Boiler Room, music composing platform Jukedeck, knitwear design business Unmade, freelancer management system Lystable and Startups 100-featured children’s electronics manufacturer Technology Will Save Us.
Backed VC seeks to invest in companies it believes can compete on a global scale, hoping to plug the gap left by traditional funds that have moved on to Series A and B rounds.
Though its initial fund was capped at €30m, the VC is reserving an additional €10m for any investors that can offer expertise to its portfolio companies.
De Haes commented: “How many VCs can truly say that the founders they back are their peers? We’re culturally connected to the entrepreneurs in our clan, and ingrained in the networks through which they build their teams.
“We see ourselves as talent scouts, backing obsessive founders extremely early and specialising in addressing the pains they face at seed. VCs invest in innovation, yet in Europe have largely failed to innovate on their own business model. We are able to start with a blank slate and take a 30 year view to transcend the old model.”