Isomer Capital Closes $268 Million Fund for European Tech Startups

Isomer Capital has closed a new 250 million euro (about $268 million) fund to support European tech startups.

The announcement comes as Isomer Capital founder and Managing Partner Joe Schorge said he expects these to be “some of the best vintage years in the #vc sector,” the company said in a Monday (June 5) post on LinkedIn.

“We are thrilled to share that Isomer Capital has done a first close on our new fund, further reinforcing our commitment to supporting early-stage European tech #startups,” the company said in the post. “With this new fund, we are poised to fuel the next wave of #innovation and growth in the European #tech #ecosystem.”

Isomer Capital, invests in top European venture capital (VC) firms, will use the new fund to invest between 5 million and 10 million euros in 20 early-stage funds in the United Kingdom and Europe and to invest 1.5 million euros in six to eight “micro VCs” over the next three years, Sifted reported Sunday (June 4).

While there are currently headwinds to raising funds — and more questions from investors — Schorge said he is optimistic because Europe’s talent base is maturing and current valuations are “prudent,” according to the report.

Isomer Capital has invested in more than 70 European VCs, making it an indirect investor in 29 European startups that became unicorns, and has made 31 co-investments and secondary transactions, the report said.

Schorge said he has seen that some growth-stage funds are now looking at early-stage VCs, adding, “That’s great for us,” per the report.

In other recent news about VCs, Finland-based VC firm Lifeline Ventures said May 17 that it closed its fifth fund at 150 million euros (about $163 million) — its largest fund to date — and will use it to continue backing early-stage founders.

About two weeks before that, on May 4, Germany-based VC investment group HV Capital said it closed a 710 million euro (about $782 million) fund targeting high-growth firms with vehicles to invest in “technology disruptors across all growth phases.”

HV General Partner Rainer Märkle said at the time that the fund will let the firm “partner with outstanding entrepreneurs, who from every industry and market across the continent, are making incredible differences to the way we live our lives.”