One of Europe's newest venture capital firms is announcing today the completion of its most recent and largest fund to date, despite growing uncertainty regarding the future of tech finance in the next months and possibly years.
The company formed and led by Frederic Court in London, Felix Capital has been able to raise $600 million. The company is setting its sights on fresh investments in cryptocurrency companies and blockchain in North America and Europe.
It intends to use the funds to continue investing primarily in its sweet spot of commerce-driven startups, complimented by firms providing tools to help manage those and the future of work, which includes sustainability.
Felix believes that the cumulative experiences of its investors, paired with its investment emphasis, will aid it through times that are considerably harder for the world of startup financing and expansion, maybe laying the framework for healthier ways in general.
Court stated in an interview, "I've experienced several recessions since the year 2000, I've spent a great deal of time redoing previous work. Complex phrases such as preferred returns are no longer utilized."
Court also pointed out that they entered the sector with a focus on short-term profits, notwithstanding the rapid influx of capital from hedge funds and other non-industry sources.
"However, our business is primarily a long-term one, and it takes a considerable amount of time to create a successful enterprise. Even more so on the consumer side, where it is impossible to over-accelerate a brand," Court added.
Farfetch and Deliveroo are among the companies in Felix's portfolio that have gone public, along with Sorare, Papier, Juni, Cocomelon owner Moonbug, scooter startup Dott, and Goop.
Felix invests in both early-stage and growth-stage companies. It intends to double down on existing wagers and acquire 20 to 25 additional companies, primarily in Europe but also in North America.
The fund will bring Felix's total assets under management to $1.2 billion. Not only is this a significant increase from the $120 million the company debuted with in 2015, but it also exceeds what Felix had hoped to raise. According to Court, its intended goal was $500 million.
This fact and the existence of the fund are significant in and of itself, but given the current market conditions, they stand out even more.
After several years of record-breaking fundraising numbers and astronomical valuations, the tech industry is currently navigating tough financial waters.