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Forestay Capital Targets Enterprise AI, SaaS With $220 Million Fund

Forestay-Capital

European venture capital firm Forestay Capital reportedly raised $220 million to invest in startups in the enterprise artificial intelligence and Software-as-a-Service (SaaS) sectors.

This is the second fund from the VC firm that focuses on enterprise technology companies, targets those at the early growth stage, and typically makes lead investments of $10 million to $15 million, Tech Funding News reported Wednesday (July 3).

Forestay Capital did not immediately reply to PYMNTS’ request for comment.

The fund, dubbed Forestay II, already partnered with cybersecurity startup Veriti and engineering intelligence startup Neural Concept, according to the report.

The firm’s first fund, Forestay I, invested in 13 companies, the report said. Among these, three achieved unicorn status and two saw acquisitions.

“The close of Forestay II is evidence of the success of our investment strategy, underscored by a hands-on approach in our commitment to make high-conviction investments,” Frederic Wohlwend, managing partner at Forestay Capital, said in the report. “Our strategic focus allowed us to cultivate a concentrated portfolio of future category leaders in enterprise AI and SaaS, and we are well-positioned to continue to drive innovation and scale within the sector with Forestay II.”

It was reported in June that tech investments in Europe are blossoming after a two-year drought.

Dealmaking picked up at early-stage companies, with private tech investor Creandum unveiling a $544 million fund that it said came together “in record time.” That followed similar-sized deals from Accel Europe ($650 million) and Plural ($544 million).

The market is more active than it has been since 2021, said Tom Weheimer, who heads British VC firm Atomico’s insights team.

“We haven’t fully washed through the overhang from the peak years, but the green shoots are all around us,” he said. “We are moving beyond the recovery phase and back into a period of growth.”

On June 17, Spanish VC firm Kfund said it raised $75 million to fund tech projects, aiming to help support founders in Europe working “with foundational technologies” defined as “data plays,” “platform layers” and AI.

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