Ready to invest their 4th fund with $250 million for early stage ventures, this VC knows a thing or two about making deals
London-based VC 83North announced today the close of their latest fund, having raised a whopping $250 million for investments in early stage ventures.
The aptly named 83North IV is their largest fund raised thus far, the team tells Geektime that they intend to continue investing in many of the kinds of technologies that have been their wheelhouse up until this point, with a few twists thrown in for good measure.
“We will continue to invest in technologies in the IT infrastructure and enterprise software, SaaS, Cloud, Mobile, FinTech, Marketplaces, E-commerce, Media, Games and IOT,” Gil Goren, a partner at 83North, tells Geektime via email. “In these domains we have developed, over the years, deep know-how, and clusters of expertise. We also plan to expand into new and emerging areas such as Automotive, AI and Robotics.”
Targeting a wide surface of technologies across Europe and Israel seems to be a decently sized endeavour for the five-member team. Still the amount of $250 being spread out over five investors feels like it is a bit much.
“We believe that an average of $40-50M per GP strikes the right balance,” says Goren. “Our experience shows that supporting your companies all the way to building an independent business requires significant funding and we intend to be there for the entire journey.”
When you move out from the idea of taking part in an early stage round where a couple of million thrown into a Seed or Series A, to a lifetime of a company that can reach much bigger sums in their later funding efforts, then the size of this fund begins to make more sense.
Offering some tips to the community of early entrepreneurs, some of whom would surely like to be among those to receive some of 83North’s investments, Goren says that they should keep these three things in mind.
- Look at your investor as a partner for a long journey. It means there should be some compatibility on the personal level as well as on the way you view the company’s vision and strategy.
- Make sure you raise enough money to get you to your next meaningful milestone at a reasonable valuation. It is compelling to raise more than you need on a hyped valuation, but it might come back to bite you.
- Raise from a fund which has invested in your space before and has the experience, network, and accumulated knowledge to help you build your business.