Isomer Capital, an independent private investment firm focused exclusively on European venture capital (VC), has announced the first close of its new €250 million Isomer Capital III (IC III), with one-third of its target subscribed by an early group of returning investors.
The fund’s first close was held four months earlier than originally planned, leveraging Isomer’s reputation and partnership model to quickly secure access to four early-stage VC firms that held their funds open to welcome Isomer into their own final closes.
This fast progress is a testament to its strategy, past performance and a strong base of supporters, as well as the resilience of the sector in the face of macroeconomic headwinds.
Joe Schorge, Managing Partner at Isomer Capital, says: “Though the current economic climate is challenging, the European technology ecosystem has proven to be resilient, innovative and highly productive, bringing exciting new technology products and businesses to the world at an increasing velocity. Our team has built a strong brand and reputation as a ‘value-add’ limited partner (LP), and the swift progress of Isomer Capital III is a testament to their good work. We will deploy IC III over the next two years, which given the powerful combination of Europe’s maturing talent base and prudent valuations we believe can be some of the best vintage years in the VC sector.”
IC III will continue with the firm’s strategy of investing in Europe’s best emerging VC funds and growth companies, enabling investors to access some of the most competitive, exciting and high-potential young technology businesses across the UK and Europe.
The fund follows the same strategy and sizing of its predecessor, IC II, which is performing well as its net asset value (NAV) continued increasing in Q4 2022 against macro headwinds, maintaining its ranking in the top 5% of its kind globally.
Chris Wade, Partner and co-founder of Isomer Capital, adds: “As a pioneer of the VC ‘fund of funds’ model in Europe, with a track record of backing some of the best VCs and emerging managers across the continent, we will strive to continue delivering strong performance and consistent returns with Isomer III.”
A commitment of up to €60 million was made by British Business Investments, a commercial subsidiary of the British Business Bank. British Business Investments is a repeat and early investor in Isomer, having previously committed to Isomer II and Isomer Capital Opportunities in 2021. Alongside British Business Investments and the European Commission, Isomer Capital has attracted a range of endowments, pensions, corporates, and family offices from across Europe, Asia, and the United States. Investors include the likes of Fondaco, Happiness Capital, Italmobiliare, Nikon, PwC Germany, and one of the largest foundations in Germany and a well known US endowment.
Judith Hartley, CEO of British Business Investments, says: “Isomer Capital is a specialist fund of funds manager, with well-established venture and growth capital investment capabilities. Following our support for Isomer’s ICII in 2020 and the Opportunities Fund in 2021, we are pleased to commit to Isomer Capital III to continue our support for innovative growing businesses.’’
Since inception, Isomer Capital has invested in more than 70 early-stage venture capital (VC) firms across Europe, gaining exposure to 29 unicorns to date, including the likes of Deliveroo, Tractable, Oyster in the UK, ManoMano, Sorare in France, Wefox in Germany, UiPath in Romania and Dune Analytics in Norway.