Frankfurt-based fund of funds Multiple Capital has closed its €20 million raise for Multiple Fund II. The fund stands unique, as it was the first time outside investors were brought into the fold. As a fund of funds, the investment vehicle covers the entire width of the European early-stage startup ecosystem, with Multiple Capital sinking cash into more than 500 ventures via 30 micro VC funds across Europe and the US.
Launched just under a decade ago, Multiple Capital’s funds have performed remarkably well. Placing capital commitments into 10 seed investors, the firm’s indirect investments include 1 decacorn, 10 unicorns, and over 50 other startups with a $100 million+ valuation.
Founder and managing partner Ertan Can spun the company out from its former family office in 2018 and has since then placed commitments in 22 additional micro VC funds in Europe and the US with the fund’s second generation.
“We started our journey in 2012 when there was literally no other fund of funds investor offering a similar product in the European market,” Can says. “Our thesis focused on building a diversified portfolio of promising micro venture capital investors in Europe. We looked at the economics and realized small funds with less than $100 million in fund size focusing exclusively on the seed stage market and holding portfolios of up to 30 ventures managed by highly incentivised small teams offer the best risk-return profile.”
Now in its second iteration, Multiple Capital is adding to the firepower by bringing Paris-based investor Michael Jackson, officially, onboard as a venture partner.
“European tech has undergone a meteoric rise in recent years,” comments Jackson, “which has greatly helped Europe’s venture capital industry develop into not only a viable asset class but one of the more attractive asset classes on the planet. Multiple Capital has been at the vanguard of that ascent by backing the best emerging managers that Europe has to offer, often when no one else would. I’m thrilled to be part of that, and to help Multiple remain the best performing fund of funds in Europe.”
At present, Multiple Capital has placements in more than 30 VC funds and has an indirect portfolio of 700+ companies.
“A unique feature of our fund of funds model is that it can scale outstandingly well. While a single venture capital fund can not scale easily from 20 million to 200 million in assets without losing the promising features of its operating model, our model can be scaled up to 250 million without affecting the core thesis. For institutional and corporate investors, we are able to create dedicated and vertical fund of funds which we can offer under a managed mandate,” concludes Can.
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