London-based investment firm that manages venture capital, growth secondary, and venture debt funds, Flashpoint has wrapped up $102 million for its VCIII fund. The fund will focus on global Series A tech startups originating in Emerging Europe.
The company has also roped in its first institutional investment limited partner, Széchenyi Funds. The Hungarian fund manager will invest $20 million in Flashpoint’s VC III fund. While Széchenyi Funds’ focus is on financial institutions, large corporates, and more mature SMEs, it provides startups with ‘smart money’ through domestic incubators and accelerators and especially through fund of funds investments.
Michael Szalontay, co-founder and general partner at Flashpoint said: “We have reached our initial goal of over $100 million for our fund despite the extremely challenging backdrop for fundraising. Being a Hungarian, I am especially proud that our first institutional investor is from Hungary as we are pursuing a shared mission in developing the venture capital ecosystem in Hungary and the Carpathian basin.”
Alexander Konoplyasty, co-founder and general partner at Flashpoint, and the managing partner for Flashpoint VC III added: “We have a tailored strategy to invest in b2b software companies in Western markets where we are particularly focussing on founders who originate from Emerging Europe. 1/5th of Western unicorns were founded by expats from Eastern Europe and Israel – they are much more cost-efficient than an average U.S. startup and there is tremendous pent-up demand for capital among them. We, therefore, bring a strong cultural fit, a wide business network and we look forward to equipping our founders for the next phases in their development.”
Dénes Jobbágy, CEO and president of Széchenyi Funds added: “Emerging Europe talent and professional investment is a highly efficient combination. Especially so in the following years when increasing cost efficiencies through technology will be more important than ever before.”
During 2021 alone, the company’s funds invested in 23 new companies and made 11 follow-on investments into the existing portfolio companies for a total of $93 million. The funds have made investments in over 50 companies including names such as Guesty, Chili Piper and Borzo (Dostavista). Flashpoint has completed ten exits, including the sale of its stakes in Shazam (to Apple) and Chess.com (to PokerStars founders and General Atlantic).