Dublin-based Frontline Ventures has launched particulars of its new €70 million ($83.8M) Frontline Seed fund III which shall be aimed toward European B2B startups. The new fund will deliver Frontline’s whole funds underneath administration to €250 million, deployed out of its places of work in London, Dublin and San Francisco. Backers of the fund embrace the European Investment Fund (EIF), Ireland Strategic Investment Fund (ISIF) and Irish banking large AIB, together with 10 tech angels, largely post-exit entrepreneurs, from Europe and the US.
The new fund has already begun to spend money on early-stage firms, and is aiming at investing in as much as 45 firms over the subsequent 4 years. Investments will vary from €250,000 to €2.5 million. It follows Frontline’s latest new $70m US-based growth-stage fund, Frontline X, which is geared to US startups eager to develop to Europe and the EU area, on condition that Ireland is an EU member, and effectively positioned to profit from the ramifications of Brexit.
William McQuillan, Partner, stated the fund would make investments about 50 p.c of the fund into new early-stage firms. The remaining funds shall be delayed for later investments in current portfolio firms.
It’s McQuillan’s view that, with Europe having 26 p.c of all the worldwide B2B software program market and the US at 50 to 55 p.c, Europe has loads of development alternatives.
The new seed fund launches at a time when US VC companies are placing down roots in Europe, similar to Sequoia which opened an workplace in London final yr, and extra just lately General Catalyst. In May of 2020, Frontline invested in Irish HQ’d firm Evervault alongside Kleiner Perkins, Index and Sequoia.
Seventy p.c of Frontline’s seed portfolio firms have raised capital from US VCs since 2012, and Frontline companions have expertise with firms similar to Google, Twitter, SurveyMonkey, Airtable, and Yammer.
In an announcement, McQuillan stated, “When we seemed on the knowledge again in 2012 – on the very begin of Frontline – it was painfully clear that European entrepreneurs lacked the infrastructure and help to construct a worldwide enterprise out of Europe. Today, Europe rightfully finds itself on top-tier US traders’ goal checklist, however international enlargement stays an necessary problem to unravel. As a crew, we’ve pooled all of our expertise and sources into serving to our founders cross the Atlantic. Seed Fund III shall be an extension of our work – to assist founders get off the bottom – and go international.”
Frontline’s extra notable investments embrace Linked Finance, Clearbanc, and Currencyfair. The Frontline X development fund has invested within the Series B of TripActions; People.ai’s $100 million Series C; and Clearbanc’s $50 million Series B.
Notable exits embrace Logentries, which was acquired by Rapid7; Orchestrate, acquired by CenturyLink; and Pointy acquired by Google in 2020.