World Founders Capital, the VC arm of German tech incubator Rocket Web, is known to be shedding as a lot as 80% of assist employees given uncertainties over the investing surroundings amid a slowdown in tech. Information of the layoffs is predicated on data supplied to Sifted by plenty of traders who’ve invested in GFC corporations.
The corporate has neither confirmed nor denied that it’s making any employees reductions and didn’t reply to a request for remark. Sifted additionally reached out individually to quite a few companions within the fund with no reply.
The agency, which raised its first fund in 2013, has greater than 90 workers, in accordance with LinkedIn. The 24 funding staff members listed on the web site (which embody simply two girls) are primarily based on quite a few continents and make investments globally from seed to progress stage.
GFC has been extraordinarily lively prior to now few years; final yr it was concerned in 202 offers globally — 54 in Europe — in accordance with Dealroom information. Latest European investments embody Fung, Tranch and Climeworks.
If the stories are confirmed, the cuts — which Sifted understands will primarily have an effect on junior and operational staff members — will probably be one of many first public VC casualties of the downturn in tech.
VC corporations on either side of the Atlantic say they’ve slowed their funding tempo and are being extra conservative after a tumble in world tech shares this yr and amid considerations about decrease financial progress. Traders say that extra cuts in VC are doubtless.
The making of World Founders Capital
GFC has beforehand backed among the world’s largest tech corporations, together with Meta, Canva and Slack, in addition to large European corporations like Revolut and HelloFresh. Its mother or father firm, Rocket Web, performed a pioneering (if controversial) position in European tech, serving to construct successes like Zalando and Jumia — whereas additionally being criticised for constructing ‘copycat’ companies.
Eleanor Warnock is Sifted’s deputy editor and cohost of The Sifted Podcast (hear on Spotify or Apple). She tweets from @misssaxbys