London’s Molten Ventures has acquired approximately 19 per cent of Seedcamp’s third fund for €8.5 million.
Announced in 2014 and amassing $30 million Seedcamp’s third outing was a pivotal moment for the firm. By 2014 Seedcamp had been active for seven years, and with the third go around, the firm self-described its position as Seedcamp 2.0, decidedly shifting focus from the ‘Art of the Start’ to that of the ‘Art of Scale’.
In so much the London-based firm went full throttle on its presence in the US and welcomed a significant portion (approximately 50 per cent) of investment capital from Europe’s largest LP, the European Investment Fund, a move that would provide portfolio companies with access to all stages of capital, from seed to IPO and M&A.
Seedcamp’s investments made from this fund include Revolut, Pleo, Grover, WeFox, Thriva and Curve.
Molten’s secondary position acquisition in Seedcamp’s third fund isn’t the first time the organisations have conducted such a transaction. Molten Ventures has previously acquired secondary positions in Seedcamp Funds I and II.
A unique, publicly listed, venture capital firm, Molten’s secondary acquisitions strategy seeks to not only provide liquidity to later-life funds but also acquire portfolios with assets that show potential for near-term realisation opportunities. According to Molten, this secondary strategy has delivered 2.5x returns.
On the transaction, Molten Ventures’ CEO Martin Davis shared:
“As we observed when launching our fundraising late last year, the current macroeconomic conditions are an opportunity for Molten Ventures, and we’re pleased to have been able to act quickly to identify and invest in this portfolio of high-quality, later-stage assets.
“We are also pleased to further deepen our relationship with Seedcamp through this transaction.”
Late last year Molten Ventures acquired LSE-listed VC firm Forward Partners in a deal valued at £41.1 million, adding 43 portfolio companies to its roster including Bea Fertility, Gravity Sketch, and Robin AI.
Lead image: The Seedcamp team. Photo: Uncredited.
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