Earlybird VC exercises its "entrepreneurial spirit" with restructure

The leading VC will intensify its focus on eastern European startups after Earlybird Digital East breaks away from the family of funds.
Earlybird VC exercises its

Earlybird Venture Capital, one of Europe’s longest-standing venture capital firms with over €2B in assets under management, has announced an organisational restructure with flagship fund Earlybird Digital East spinning out as a separate entity. 

Earlybird's family of funds will soon focus on two distinct entities: Earlybird and Earlybird Health. They will be managed by independent partnerships with offices in Munich, Berlin, and London, and additional presence in Paris, Milan, Dublin and Cologne. The Digital East Fund will rebrand and continue its journey independently under a new name. 

Looking ahead, the company anticipates an enlarged investment scope of the formerly Digital West group (now Earlybird) to Central and Eastern Europe, led by new Venture Partner Dan Lupu. Investment in CEE startups has picked up in 2024 across many firms.

Earlybird is known as a pan-European VC, often leading early-stage deals while also working in collaboration with peers such as Index Ventures, EQT, Gilde, General Catalyst/La Famiglia, HV Capital, VSquared, and LocalGlobe.

Earlybird cited 'shifted geographic limitations' following the pandemic as a factor in the decision. A spokesperson told Tech.eu: "Organizations naturally evolve and try new focal points to discover more opportunities and benefits; this is a normal and healthy learning process. We would rather be less rigid and keep an entrepreneurial spirit to test new endeavours." 

The Earlybird-X fund, which leveraged a network of 45 professors from leading universities such as TU Munich, RWTH Aachen, and Imperial College London, will be integrated into Earlybird’s flagship early-stage strategy. Vision Lab, another key initiative, will evolve into Earlybird’s overarching pro-bono ESG initiative.

Dr. Hendrik Brandis, Co-Founder and Partner at Earlybird, commented: “This is a true upgrade of our fund structure as it enhances our ability to provide even more focused support and expertise to our portfolio companies. With the two entities, we can be more responsive to market needs and better support visionary entrepreneurs. As such, we are now in the ideal position to achieve even greater impact in the European venture capital landscape.”

Earlybird has launched dedicated and independently managed investment strategies including Earlybird Digital East for emerging Europe, Earlybird Health for healthcare innovation, Earlybird-X for university spin-offs, and Vision Lab for migrant entrepreneurs. The proprietary software platform, EagleEye, leverages data and AI to enhance efficiency, effectiveness, and inclusivity in the investment industry.

The Digital East Fund team’s investment track record includes some of the multi-billion dollar successes emerging from the region, including UiPath, Payhawk, and Trendyol. Managing Partner of Earlybird Digital East Cem Sertoglu spoke to Tech.eu about the impending changes: "Starting in the Autumn of 2024, Digital East Fund will no longer be a part of the Earlybird family of funds and will discontinue licensing the Earlybird brand. In that time, Digital East Fund has made transformational investments in some of the most exciting startups emerging onto the global stage, including UiPath and Payhawk.

"We're very proud of our portfolio, 80% of which is now building from the US or UK. The Digital East Fund team covering the region and supporting this growth journey will remain completely intact.

"Our new brand will launch in the Autumn and we will remain highly focused on partnering at the early stages of the most disruptive and innovative companies."

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