Fly Ventures, a Berlin-based venture capital firm that invests in seed-stage European startups within enterprise and deep tech, has launched its third fund with a total size of €80 million. This is an increase from their previous fund, which raised €53 million in 2020.

A Boutique Firm with a Focus on Technical Founders

The firm’s founders, Gabriel Matuschka and Fredrik Bergenlid, have stated that they aim to operate as a boutique firm, focusing on investing in technical founders who are developing innovative solutions. With its new fund, Fly Ventures plans to continue supporting early-stage startups with significant growth potential.

Investment Strategy

Fly Ventures invests between €1 million to €4 million in rounds of €2 million to €10 million at the inception stage. The firm’s investment strategy focuses on backing technical founders who are developing solutions that can revolutionize industries. Matuschka explained, "We like doing things that at the time, other people think, what the … material science and AI?! These days, more people do it, but our game plan is to do these kinds of investments two or three years before anybody else cares."

Equal-GP Model

The firm operates under an equal-General Partner (GP) model, where all four partners have an equal share. The partners are distributed across Berlin, London, Paris, and Zurich. This unique structure allows Fly Ventures to maintain a global presence while maintaining its boutique approach.

Matuschka noted, "I think the Berlin/London thing specifically is also plus Munich, because from Berlin you can cover Munich. And for the more technical stuff, Munich tends to be a bit stronger. But it was always clear you had to do Germany and the UK. Then I guess over the last four years or so, Paris, on the more technical side, also really accelerated, which is the reason why we also added Marie, who is based in Paris."

Strong Track Record

Fly Ventures has a strong track record of investing in successful startups. Some notable investments include:

• Inato: A clinical trials marketplace that has received significant attention for its innovative approach to healthcare.
• Salv: An anti-money-laundering startup that is making waves with its advanced technology.
• GitGuardian: A cybersecurity startup that is protecting enterprises from vulnerabilities.

Recent Developments

In a recent development, Wayve, a startup focused on autonomous driving, raised $1.05 billion in a Series C round led by SoftBank. This significant investment demonstrates the growing interest in AI and deep tech solutions.

Fly Ventures has also invested in Lakera, a Zurich-based startup that aims to protect enterprises from Large Language Model (LLM) vulnerabilities. Additionally, the firm has invested in Orbital Materials, a U.K.-based company developing foundation models for materials science.

Conclusion

The launch of Fly Ventures’ third fund with €80 million reflects the growing demand for venture capital investments in European startups. With its focus on technical founders and deep tech solutions, Fly Ventures is well-positioned to support innovative startups that are transforming industries.

As Matuschka noted, "Our game plan is to do these kinds of investments two or three years before anybody else cares." With its strong track record and unique investment strategy, Fly Ventures is poised for continued success in the venture capital landscape.

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