Isomer Capital announces first close of new €100m opportunities fund
● Isomer Capital, one of the most successful investment companies in the European venture space, today announces the first close of its new €100m co-investment fund, “Isomer Capital Opportunities”.
● Isomer will use the new opportunities fund to co-invest in the most promising technology scale-ups in Europe, alongside the venture capital funds in which it is invested. Isomer Opportunities has already completed its first deal in a highly competitive transaction.
● Since inception, Isomer Capital has invested in 40 early-stage VCs across Europe, giving it unprecedented access to dealflow, and a ‘macro-view’ of the European technology ecosystem. The firm has acted as a cornerstone investor to some of Europe’s most exciting new micro and early-stage VC funds.
● Isomer Capital’s portfolio has exposure to ten unicorns, and four European technology companies that have reached IPO to date, including Darktrace and Deliveroo. Isomer Capital Opportunities seeks to build on this track record.
Today, Isomer Capital is pleased to announce the first close of “Isomer Capital Opportunities”. The new co-investment fund is backed by British Business Investments, through its Managed Funds Programme, amongst other global institutions.
The goal of the new opportunities fund is to build on the success of ‘Isomer Capital I’, the firm’s fund-of-funds that invests into early-stage venture capital firms across Europe. Isomer Capital Opportunities will enable the firm to continue early growth investing alongside its VC partners into the UK and Europe’s fastest growing technology companies.
Isomer Capital Opportunities will provide ongoing support to fast-growing technology scale-ups from within the firm’s early stage portfolio. Isomer’s first fund of funds gained exposure to companies in 34 countries, generating high and consistent demand for growth capital.
Isomer Capital Opportunities will co-invest in approximately 20 companies sourced from within the firm’s previous fund-of-funds, Isomer Capital I.
Chris Wade, Co-Founder and Partner of Isomer Capital, says,
“Together with our partner VC funds we continuously monitor the most promising portfolio companies that have rapidly growing revenues and address a market opportunity that could enable a company to become a world class leader. Isomer Capital Opportunities will typically invest in companies that have been in the Isomer portfolio for more than 8 quarters and demonstrate a strong fully-formed management team with a shared vision of building a global company.”
Judith Hartley, CEO of British Business Investments, said:
“Isomer Capital is a specialist fund of funds manager, with well-established venture and growth capital investment capabilities. This commitment to Isomer’s co-investment fund is well aligned with the strategic aims of the Managed Funds Programme and will provide a steady stream of capital to innovative growing businesses across the UK.”
The investment from British Business Investments comes from its £500m Managed Funds Programme, which is designed to address the patient capital funding gap in the UK. By targeting a commercial rate of return, the continuing aim of the programme is to demonstrate the attractiveness of longer-term, later-stage venture and growth capital investments for institutional investors. Access to these sources of patient capital will enable ambitious companies to reach their full potential and help make the UK a great place to start-up and scale a business. This investment continues a strong relationship between British Business Investments and Isomer Capital, as it also invested in the €250m Isomer Capital II Fund of funds, through the Managed Funds Programme.
In addition to British Business Investments, Isomer’s funds are backed by foundations, corporations, and family office investors from Europe, Asia and the US. Many seek to access innovation and, in some cases, co-invest alongside Isomer and its partners, a factor instrumental to Isomer and its portfolio companies’ success.
Notes to Editors
About Isomer Capital
Isomer Capital is recognized as a leading venture capital investment firm in Europe, investing in some of the best European technology companies, through VC fund commitments, co-investments, and secondary transactions.
For years now, Isomer has funded European technology innovation, backing high potential early-stage VCs and high growth tech companies in Europe. Being invested today in 40 funds in Europe and having exposure to over 970 tech companies, Isomer will leverage this network of strong partnerships to access and co-invest in the fastest growing companies, the ones generating already substantial revenues and being backed by the best early-stage VCs in Europe. Isomer Capital I has so far generated 7 unicorns, four of which have exited through IPO or M&A (including Deliveroo and Darktrace in the UK) recently. 6 years after its launch it is already generating substantial returns for its investors. Following this success, Isomer has launched last year Isomer Capital II, a €250m diversified fund of funds that has already invested in 14 VC funds and invested over 25% of its capital with no J-curve thanks to secondary transactions and early exits.
Trusted partnership and experienced execution ultimately deliver better outcomes.
About British Business Investments
British Business Investments is the trading name of British Business Investments Ltd, a wholly-owned commercial subsidiary of British Business Bank plc, the UK government’s economic development bank. It forms part of the British Business Bank’s commercial arm.
British Business Investments aims to earn a commercial return by investing – through finance providers – in smaller businesses and small mid-caps, pursuing investments on a fully commercial basis without receiving any economic advantage from the government. Find out more at bbinv.co.uk.
British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such. Neither British Business Bank nor its principal operating subsidiaries are authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.
The funding from British Business Investments to Isomer Capital does not amount to any endorsement or warranty from British Business Investments, the British Business Bank plc, or the government of the UK.