Pan-European Swiss venture capital firm Giano Capital announced the launch of a €50 million later-stage fund to invest in best-in-class companies in the European tech and digital space. Driven by the mission to bring liquidity to the secondary market, the Geneva-headquartered firm is starting out to build the first European single-asset late-stage secondary fund.
According to Giano Capital, they are building a new category in VC investing in Europe, bringing a much-needed structured solution to existing shareholders seeking liquidity and investment opportunities to new investors who previously had no access to these privately held companies. The fund will invest in up to 15 companies primarily within Europe. The ticket sizes range from €2 million to €25 million including co-investments which will be offered to its Limited Partners to maximize returns.
Giano Capital is founded and managed by serial entrepreneur Alberto Chalon and Andreas Wiele, one of Germany’s most prolific media and tech executives. Alberto Chalon is the founder of a €300 million+ company, serial tech investor and partner of the prestigious European Investment Fund Business Angel Program. Andreas Wiele is the former President of Axel Springer Digital and current Chairman of the ProSiebenSat.1 advisory board, one of the largest European media companies.
“We are convinced that the secondary market will establish itself in the coming years as a new growth market between early-stage private companies and the public markets. Our ambition is to develop Giano Capital as a key player in this space,” said Alberto Chalon, Founding Partner at Giano Capital. “We thank the many influential family offices, outstanding entrepreneurs and tech pioneers that have joined our fund as Limited Partners. They share our vision that the late-stage secondary market is the best opportunity to seek high VC-like returns with limited PE-like risk.”
Founded in 2021, Giano Capital targets market-leading companies with an outstanding founder team that have grown to a minimum of €30 million in revenues, an annual growth rate of at least 30% and a clear path to profitability and positive cash flow. Furthermore, these companies are supported by tier-1 investors and have the financial runway to aim for an exit in 2 to 4 years. These strict criteria are crucial to allow Giano Capital to limit its fund life to 5 years, which is half the time of the traditional 10-year funds, and to aim for an IRR target greater than 25%.
“The time-to-exit has almost doubled for start-ups between 2010 and 2023. The current macroeconomic environment with rising interest rates and falling tech valuations will further exacerbate the liquidity shortage for founders, business angels and early-stage funds. At the same time, the market is also very appealing for new investors to invest in these top companies at attractive valuations,” said Andreas Wiele, Founding Partner at Giano Capital. “With Giano Capital we offer a great solution to become one of the leading matchmakers in this market.”
Giano Capital has also announced its first investment in Finn, a category leader for car subscriptions in Germany and the US that is offering a true e-commerce experience for new cars. Founded in 2019, Finn is committed to revolutionizing conventional car ownership and making driving a car as easy as online shopping. The company offers flexible subscription models for new cars, which are delivered free of charge within a few days.
“We are very happy to welcome Giano Capital as our investors, as Alberto and Andreas bring a very unique entrepreneurial experience that will help us in the future growth of our company way beyond the capital contribution,” said Maximilian Wühr, Co-Founder & CEO at Finn.
In 2023 Giano Capital plans to make at least three more investments in fast-growing market-leading companies in the European tech- and digital space.
