The US has had solo VC fund managers for a few years however the pattern is solely simply beginning to catch on in Europe. One of the most recent is Underline Ventures, began this yr by Bogdan Iordache in Romania. His profession trajectory in the direction of being a Solo GP matches the profile: a former entrepreneur, a key participant within the Eastern European tech scene, a founder of the How to Web convention, and a former VC in a a number of Partner group.
Above all, what Europe wants extra of is these ‘funds of funds’ that are specialised in working with this new wave of European Solo GPs.
Hypernova, a $25m fund which soft-launched in June has been based by skilled investor Tugce Ergul. She plans to not solely spend money on different funds but additionally instantly into startups. Ergul was previously with Angel Labs, an “investor accelerator”, which unfold throughout 44 international locations.
Speaking to TechCrunch, Ergel stated: “There’s a new wave of funds coming up. We’re talking about successful founders that are now starting their own funds to invest in new entrepreneurs. There are partners leaving their former funds starting their own funds, because now it’s easier and cheaper than ever to start a fund. And there’s more support for solo capitalists.”
So how does it work? Hypernova places 40% of its fund into Solo GP funds, and the remaining instantly into startups, with 50% within the US and 50% in Europe.
Ticket sizes might be $500k-750k into these Solo GPs who’re elevating their first fund, and Hypernova will intention not only for financiers however doubtlessly journalists, angel traders, former entrepreneurs, or Associates / Partners spinning out of their earlier VC fund.
Hypernova presents new GPs assist on the fund administration facet, the tech wanted, LP introductions, branding assist, and coinvestment alternatives
Ergel added that previously no LP would give Solo VCs any cash: “Now there’s a there’s a new world out there you can find LP money if you’re just one person and a solo GP. Starting funds has become cheaper. You can set up a fund for $10,000 and your fund admin costs are really low. So it’s just making the access which much more easy for these fund managers. So we want to back those fund managers. Then that’s where the hybrid play comes into place because the other half of the fund is a direct investment vehicle. And we will either co invest with these funds that we invest in, or we’re going to invest in the follow on rounds into the winners of these fund managers.”
For its direct investments, Hypernova plans to give attention to automation, retail, finance, logistics, transportation and delivery, with $250k-500k ticket sizes, and it received’t take board seats.
Hypernova is claiming to be the primary female-led solo GP fund in Europe and the primary female-led solo GP fund-of-funds within the US
Since its tender launch in June Hypernova says it has:
– Invested in an early stage infrastructure fund based mostly out of San Francisco
– A London based mostly fund managing athletes’ cash
– A Berlin based mostly, solo GP fund
– LA-based deeptech fund
– San Francisco based mostly fund investing in LP secondaries (Fund II).
– Invested instantly in a hydrogen market based mostly out of San Francisco
– DevOps for carbon elimination corporations based mostly out of Berlin
– Cohort based mostly studying and expertise platform based mostly out of London known as Neol
– a Micro-fulfillment platform to optimize the final mile
It now plans to open an workplace in London and rent a London based mostly associate as of January 2023.
And it’s launching an LP variety and inclusion program to get new traders into the fund-investing sport the place they may co-invest with with very small quantities.
“I’m a solo venture capitalist myself,” Ergel added. And that’s additionally one of the new issues for the markets. I began this as a result of I skilled so many difficulties and points myself being a solo GP. If I had began this within the US as a pure US centered American fund, I’d have closed it in six months. But as a result of I wished to do one thing that’s bridging US and Europe it took so much longer.”
A new wave of Solo GP VCs is coming to Europe and Hypernova hopes to power it by Mike Butcher initially printed on TechCrunch