World VC agency Eight Roads, finest recognized for backing firms like Cazoo and Spendesk, has raised its fourth fund for European and Israel scaleups.
Davor Hebel, managing companion and head of Eight Roads Ventures Europe, says it can deploy the $450m throughout 15 to twenty new firms in shopper, SaaS, fintech and healthtech within the area. The common preliminary cheque measurement shall be $5m to $50m per firm. The fund doesn’t specify a stage, solely that they’re searching for “firms which have reached product-market-fit.”
Hebel, who’s been investing in European tech since what he refers to because the “ice age”, says “Europe has come on leaps and bounds” because it creates greater tech firms and extra successes exterior massive hubs like London.
Take the case of used automotive market Cazoo. Again in November 2018, Hebel recollects having lunch with serial entrepreneur Alex Chesterman. Chesterman had simply offered his earlier firm, Zoopla for £2.2bn, and stated he already had a brand new firm in thoughts. Simply over three years later, that firm, Cazoo, has gone public within the US through a particular goal automobile (SPAC) and is now price over $7bn.
Eight Roads is backed by funding big Constancy and doesn’t have another LPs. The corporate was the proprietary funding firm of Constancy Worldwide Restricted however demerged in 2019.
Listed here are essentially the most beneficial European firms Eight Roads has invested in (some have been acquired or IPOed and a few are nonetheless personal), based mostly on valuations compiled by Dealroom:
On-line used automotive market Cazoo was based by Alex Chesterman in 2018. It grew to become the quickest European tech firm to succeed in the $1bn unicorn milestone (a document that has since been crushed by Gorillas). Eight Roads invested in 2020.
In February, simply earlier than a SPAC deal was determined, valuing Cazoo at $7bn, Eight Roads owned simply shy of 1% of the corporate, in accordance with Beauhurst.
Tel Aviv-founded Fireblocks is a crypto infrastructure startup. It most not too long ago raised a $310m Sequence D from Stripes, Sequoia, Spark Capital and Coatue at a $2bn valuation. Eight Roads invested within the $16m Sequence A in 2019.
Eight Roads was an early investor on this Malmö-based database firm, initially main the $10.6m Sequence A again in 2011. It’s now price $2bn after a $325m Sequence F led by Eurazeo. It was the most important funding in database historical past, in accordance with the corporate. Undoubtedly a sluggish burn in comparison with the expansion of newer European firms like Cazoo.
One other Israel-founded firm, AppsFlyer is a SaaS cellular advertising platform. Eight Roads led the $20m Sequence B in 2015. The corporate was most not too long ago valued at $2bn after an funding from Salesforce Ventures.
Hebel says that SaaS is likely one of the largest funding areas for the agency. Clients “are used to a sure shopper expertise of their buyer life, so why wouldn’t you’ve the identical pleasant expertise in new software program?”
Second-hand market Letgo was initially headquartered between New York and Barcelona. It was acquired by competitor OfferUp in 2020.
The ecommerce furnishings platform was one of many UK’s early tech successes. Eight Roads participated in its Sequence C in 2015. The firm IPOed earlier this 12 months at a £775m valuation.
Dutch startup Otrium needs to unravel vogue waste by creating an ecommerce market for manufacturers to promote extra inventory. Eight Roads invested for the primary time in 2020 when it led the $26m Sequence B. Dealroom estimates the corporate is price just a little over €800m.
Eight Roads invested on this “digital flea market” based mostly in Barcelona for the primary time in 2015. It briefly merged with one other Eight Roads firm, Letgo, earlier than promoting its stake in 2018 and has since raised extra VC money.
French B2B fintech Spendesk first welcomed Eight Roads onto its cap desk in 2020. The VC adopted on once more in 2021. The deal was led by Eight Roads Ventures Europe’s first feminine companion, Lucile Cornet (she was promoted earlier this 12 months).
Hebel says Eight Roads “would like to do much more” investing in fintech, and says that Europe continues to be within the “early innings” by way of the sector.
Eight Roads first invested on this London/Zurich-headquartered digital well being firm within the Sequence A in 2017. The corporate offers digital food regimen and way of life teaching, specifically for folks with diabetes, and raised an $80m Sequence C final month. Hebel says, “it’s changing into a lot simpler to provide folks very customised and personalised recommendation about what they need to eat and when they need to eat, and monitor all the important thing indicators.”
“We’re beginning to see some extremely attention-grabbing European digital well being firms,” he says.
Eleanor Warnock is Sifted’s commissioning editor. She tweets from @misssaxbys