Berlin-based early-stage backer, and prolific user of Notion, Cavalry Ventures has launched its third fund at €160 million. Over the next five years, the boutique investment firm plans to make 30 investments through this vehicle, or on average, 12 investments per year.
Known for its selective approach, according to Cavalry’s managing partner Claude Ritter, this methodology allows the 16-member team to provide an “intensive collaboration with the founding teams.”
"We want to be an investor that we would have benefited from early on when we were still founding companies ourselves. Our approach is designed to intensively assist and empower young companies in the first two to three years, laying the key building blocks for further healthy growth," says Ritter.
"Our so-called platform comprises more than 220 investors who bring extensive experience in various fields, know the pitfalls of building a business inside out, and can provide targeted advice."
Individuals amongst Cavalry’s LPs and support providers include Gero Decker (Signavio), Constanze Buchheim (i-Potentials), and Dr. Stephen Weich (Flaschenpost).
Since 2016 Cavalry has amassed over 50 companies amongst its portfolio including BRYTER, Clarisights, Forto, McMakler, REKKI and PlanRadar, and was the 2021 winner of the "Hottest Seed Fund" award at The Europas.
Currently, Cavalry sees promising opportunities for tomorrow's growth companies in the following three fields in particular.
- Projection I: The cloud will continue to grow
Today, 60 percent of corporate data worldwide is being outsourced to the cloud, and this trend is increasing. The relevance of secure storage and processing of sensitive data will continue to grow. New solutions in the areas of cybersecurity and artificial intelligence will take advantage of this development.
- Projection II: Sustainable business practices will become the standard
The balance between social, ecological, and economic aspects is playing an ever more important role for businesses. In many places, the use of software already ensures that the respective activities can be optimally coordinated – be it in the reduction of emissions, the manufacturing of products, and the implementation of a circular economy or in the structuring of supply chains.
- Projection III: B2C technology will become more diversified and individualised
Numerous population segments have so long been neglected by digitisation. Not only age groups such as the elderly, but also people who share certain interests, social backgrounds, health aspects, experiences, and much more. In these areas, there is still great potential to enable participation in the digital ecosystem and thus drive inclusion.
"We are increasingly observing founders who are building much more capital-efficient companies compared to the past. Moreover, they are thinking significantly more long-term, far beyond the next round of financing. Given the current market conditions, they are focussing on creating substance that can survive critical times," concluded Ritter.