There’s a lot you can learn from how venture firms evolve — not just in what they invest in, but in how they run themselves. Take HV Capital. Late last year the firm completed a full handover from its four founding partners to a new generation of general partners, myself included — a process that many firms struggle with, but which, in HV’s case, was smooth, deliberate, and built for the long term.
I spoke to Partner, Barbod Namini to learn more about the Firm and his approach to investment.
A multi-generational Fund built to last
According to Namini, HV Capital’s generational transition “shows that we’re serious about being a multi-generational fund — one that can thrive for decades, not just the lifespan of its founders.”
“The founders built an incredible foundation over 25 years, but to keep growing for the next 50, you need new energy and perspectives.
It takes humility for founders to let go of something that’s their life’s work, but they understood that the only way to preserve HV’s success was to pass the torch.”
“It’s an honour to continue what they built and to help take it to the next level.”
Two decades of backing European innovation
Founded in 2000, HV Capital has a long track record of spotting Europe’s future winners at the Seed stage, backing the first generation of German billion-dollar businesses.
With over €2.8 billion under management and investments in around 250 disruptors across industries, HV Capital is one of the most active venture firms in Europe.
From early stage to growth, the Firm leads early-stage rounds from €500k to €10 million, makes growth investments of up to €60 million, and follows on with as much as €100 million per company. Its typical partnership spans a decade or more, providing continuous support at every stage of a company’s journey.
In 2022, the firm launched a continuation fund — a first of its kind in Germany — to extend that commitment even further.
Further, over the years, HV Capital’s portfolio companies have collectively created more than 100,000 jobs — a testament to the enduring impact of long-term partnership and shared ambition. Investments include feld.energy, LAP Coffee, and Tzafon.
From coder to global investor
Barbod Namini’s fascination with technology began early, when he taught himself programming and web design as a teenager.
After earning a Master’s in Software Engineering from Imperial College London and an MBA from Columbia Business School, he moved into investing roles spanning public markets, private equity, and venture building. Before joining HV, he worked on the first privately funded submarine cable on Africa’s east coast (Seacom) and later helped expand Rocket Internet’s investment portfolio as VP of Investment Management.
Namini recounts, “I did my MBA in New York, and Rocket was what brought me back to Germany — even though I was born here, I didn’t grow up here. “
“It really gave me the opportunity to see Berlin’s startup ecosystem up close, just as it was starting to take off. Sometimes you just need to be in the right place at the right time.”
That one year turbocharged his German network. Namini learned who was active in the ecosystem, what the key topics were, and how the scene worked.
Joining HV afterward allowed him to combine that local insight with his international investing experience from London and New York. Namini joined during the beginning of Fund V, which was the Firm’s first fund as a fully independent VC with a diverse base of LPs.
He recounts, “Our earlier generations were backed by a single LP, but we later restructured the firm. “It’s been a great journey — from Fund V onwards, we’ve grown into a broader platform, added co-investment funds, and built one of the most established track records in Europe.”
At HV Capital, he combines his background in finance with a deep understanding of emerging technologies to lead investments across fintech, insurtech, and B2B SaaS and has led early investments in companies including BUX, Penta, Yapily, and Solaris.
Why raising €500 million no longer feels impossible
According to Namini, when he started, the German ecosystem was still very young.
“If you go back to the dot-com bubble and its aftermath, there were only a handful of VCs in the country. Rounds were often in the hundreds of thousands of euros — mega-rounds were unheard of.
Berlin wasn’t what it is today. But over time, the ecosystem matured dramatically. The investor community evolved, and the willingness to take risk expanded.”
However, when the pool of capital is small, you’re forced to back business models that become profitable quickly — you simply can’t fund the journey to a multibillion-euro outcome. But that’s changed, and now according to Namini,
“Germany and Europe can absolutely support companies with global ambitions. You also start seeing the flywheel of success: serial entrepreneurs, experienced operators, angel investors — all recycling their knowledge and capital.
Successful exits create new networks of founders and investors. Just look at Sweden — Spotify and Klarna alone have spawned over 200 companies.
Once people see what’s possible and have worked inside hyper-scaling companies, their mindset changes. Raising €500 million doesn’t feel impossible anymore once you’ve seen it done.”
There’s often talk about German risk aversion, but Namini believes it’s changing quickly.
Noting, “it’s important to remember that risk appetite isn’t just about founders — it’s also about investors."
"You can only take as much risk as the capital available to you allows. If follow-on capital is scarce, startups have no choice but to reach profitability quickly.
Real innovation, though, requires investment into the future — which means burn. As capital markets deepen, so does the collective willingness to take those risks. The two things go hand in hand.”
Why investors are prioritising runway over uplifts
The last few years have been turbulent for the startup ecosystem, with some investors and many startups struggling to raise. Namini explained that when public markets shut down, the impact rippled through every stage of venture investing. “Initially, people assumed the early stages would remain immune,” he said.
“But if exit windows stay closed for long enough, that changes investor behaviour all the way down the stack.”
He noted a recent tendency to “overfund strong teams” — giving startups more runway because investors are reluctant to play the old game of raising every 12 months at an uplift.
“In today’s market, to justify a higher valuation, companies need to hit much tougher milestones than four years ago,” he added. “You want to make sure they’re funded long enough to reach a real inflection point before coming back to market.”
For Namini, success in venture capital still comes down to returns — exits and capital back to LPs — but timelines inevitably stretch. “Venture capital is cyclical, and when exits slow, LPs naturally double down on established firms with strong track records,” he said.
“We’ve benefited from that. Our last fund was the largest we’ve ever raised, and with two and a half decades of proven returns, LPs have confidence to keep backing us even through tougher cycles.”
How HV Capital keeps evolving with the market
According to Namini, HV today is a very different firm than it was ten years ago.
It now operates a dual-fund model — HV Early and HV Growth. That means we can invest from pre-seed all the way through Series C and beyond.
“We call ourselves a generalist fund, but that doesn’t mean we’re shallow. It means the fund invests across sectors, but within it, you’ll find partners who are genuine specialists in their verticals.
Founders who work with us also benefit from our large platform team, which supports them operationally from the earliest stages — we combine early-stage flexibility with the infrastructure of a large, mature fund.”
Further, he asserts that HV has always evolved with the market.
Historically, HV was known for B2C, then we shifted early into B2B, SaaS, and fintech.
"Each shift aligned with where we saw the next opportunity emerging. But in recent times HV has seen a greater appetite for deep tech — “companies with more IP risk or longer paths to commercialisation, where value lies in invention rather than distribution,” shared Namini, detailing that the Firm is comfortable with technically challenging areas like robotics, advanced materials, and other deep-engineering companies that need patient capital.
He asserts that “when governments start announcing half a trillion euros in defence and security investments, you have to pay attention."
“Even if most of that goes to legacy players, the portion that goes to new innovation is still enormous — potentially larger than the entire European VC market in some years.
The question then becomes: where do we feel comfortable investing, and where do our LPs draw the line?
For us, the focus is on dual-use technologies — systems that enable data collection, monitoring, or logistics rather than weapons."
HV has invested in companies like Quantum Systems and ARX Robotics, which build critical capabilities but not armaments.
To Namini, it’s about technological sovereignty — ensuring Europe can develop and maintain strategic capabilities in a responsible way.
From Berlin to London
HV Capital’s recent expansion into London was, according to Namini, “a function of scale and ambition.” “When you’re a smaller fund, it’s fine to be based in one city and fly around for deals,” he explained.
“But once you reach a certain size — in both capital and team — being pan-European becomes essential.”
With the UK still Europe’s largest startup ecosystem, having a physical presence there was a natural next step. “Feet on the ground make all the difference in deal flow and perception,” Namini said.
“It shows founders and co-investors that we’re not just a German fund that visits occasionally — we’re a European fund with real local presence.”
HV has already built a strong team in London, including hires from other top funds. “We’re seeing the results of that investment already,” he added.
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