EUVC EUVC

Rainer Märkle is the General Partner of HV Capital, €380m Venture and €400m Growth fund, with almost €3BN AUM.

Rainer joined HV 15 years ago. In his third week at the firm, HV invested in Zalando. Accompanying the founders of Zalando from seed to IPO and beyond has been the most rewarding chapter in his VC career. It taught him that anything is possible, boundaries are imaginary, and amazing things can happen by working in the right set-up. Aside from this, he has been involved in big exit stories with HelloFresh, Quandoo, and Stylight. Some of his other highlights include working with Scalable Capital, Alasco and finn.auto.

In his spare time, Rainer is a family guy. He also likes to push boundaries in sports, participating in the Ironman World Championships Hawaii and many other endurance events.

Go to eu.vc for our core learnings and the full video interview 👀

Chapters:

03:16 Rainer’s Journey: From Engineer to VC
04:04 Diving Deep into HV Capital
07:21 Transitioning from Corporate VC to Independent Fundraising
10:56 Raising Funds in a Challenging Market
13:26 Maintaining Trust with Existing LPs
16:03 Keep Your Principles Against Market Hype
30:57 Strategies for Achieving Fundraising Goals
32:39 The Importance of DPI in Fundraising
34:33 Balancing Act: Liquidity vs. Value Potential
37:34 Decision-Making Dynamics Within the Firm
39:29 Adjusting Strategies and Narratives in Changing Markets
42:05 Insights for Emerging VCs and Fundraising Challenges
44:30 Shout Outs to Emerging Managers and Partners
48:26 Key Learnings from the Latest Fundraise
51:43 Advice for Younger Selves and Emerging VCs

We continue our discussion on Fundraising during and after the tech reset, as part of our little hype parade ahead of the launch of the State of European VC Fundraising Report. Today, we have with us two close friends of the pod: Carlos Eduardo Espinal from Seedcamp and Bogdan Iordache from Underline Ventures.

Carlos Eduardo Espinal is a Managing Partner at Seedcamp, arguably, Europe's leading seed fund, first launched in 2007 to support European entrepreneurs truly compete on a global scale. With investments in over 460 companies including publicly listed Romanian-founded, UiPath, Wise and unicorns Revolut, wefox and Pleo. Carlos is a published author, fellow podcaster and has been on the Forbes Midas List as one of the most influential VCs in Europe for more or less as long as yours truly has been alive.

Bogdan Iordache is the Founding GP of Underline Ventures, a $20M seed fund in Romania and the first solo GP in the region. Bogdan and his team are focusing on backing Eastern European founders with global ambitions, and though I just said vertical-agnostic, Underline does pay extra attention to enterprise automation, AI, cybersecurity, industrial tech, defense, and climate-related startups 🌳.

Chapters:

00:14 Shifting Sands and the Rise of New LPs
00:32 Seedcamp and Underline Ventures
04:52 Shifting Sands and Impact on Emerging Managers
05:43 Bogdan's Journey Through the Tech Reset
07:58 Carlos's Insights on Supporting Emerging Managers
10:23 The Challenges of Fundraising
12:00 The Tech Reset on VC Funding
17:10 Raising Fund Six and the Importance of Fund Size
21:02 The Art of Fundraising and Learning from LPs
26:27 Exploring Overlooked Geographies in Venture Capital
39:00 The Role of Community and Background in VC
47:44 Reflecting on the Evolution of the Venture Ecosystem
50:02 Closing Thoughts on GPLP Relationships and Emerging Managers

We sat down with Daniel Keiper Knorr, founding partner of Speedinvest for a discussion on what he thinks allowed them to raise 500 million during and after the tech reset.

What ensued was a conversation revealing how Speedinvest decided to diverge from traditional VC practices by dedicating substantial resources including the full time attention Daniel, one of the founding partners, to fundraising and investor relations.

This conversation ONLY focuses on the raise process, dynamics and learnings, to understand the thesis behind the fund, go read the original launch post of Speedinvest IV by Oliver Holle.

Chapters:

03:34 Daniel's Journey into Venture Capital
04:02 The Evolution of Speedinvest
05:15 The Unique Approach to Fundraising
06:28 Navigating Fund Generations
07:21 Experiencing Market Cycles and Pivots
08:28 The Strategy Behind Speedinvest's Latest Raise
11:22 Adapting to Changing Market Conditions
12:26 The Impact of Macroeconomic Changes on Fundraising
16:19 Pivoting the Narrative Around the Fund
21:11 Differentiating Between Seed and Growth Stage Investing
24:56 Advice for Fund Managers Raising in Europe
26:03 Understanding LP Preferences and Building Relationships
27:41 Creating Urgency Among LPs
28:53 Thoughts and Advice for Future Fundraisers

Key learnings from the episode

Economic sensitivity and its implications for venture capitalOne of the most striking revelations from Daniel’s experience is the profound impact of global economic conditions on venture capital dynamics. He delves into how the sudden shift in LP inquiries from portfolio-centric to macroeconomic concerns mirrored the broader economic uncertainties, highlighting the necessity for VCs to be economically astute. This sensitivity to macroeconomic shifts is not just about staying informed but about integrating this understanding into the strategic narrative of the fund. Daniel’s recount of adapting Speedinvest’s narrative in response to changing economic sentiments underscores the importance of this adaptability not as a reactionary measure but as a strategic imperative. It serves as a compelling reminder that venture capital, while focused on the future, must navigate the present’s economic realities.

The art and science of LP communicationDaniel’s emphasis on transparent and ongoing communication with LPs underscores a fundamental pillar of successful venture capital operations. The strategic approach to communication — viewed through the lens of building trust and managing expectations — is both an art and a science. Daniel illustrates how Speedinvest’s preemptive communication strategy, especially in times of strategic pivots or market volatilities, has been instrumental in reinforcing trust with LPs. This proactive engagement goes beyond regular updates, encompassing a nuanced understanding of LP preferences, concerns, and the strategic dissemination of information to mitigate surprises and align expectations. It’s a testament to the view that in the realm of venture capital, effective communication is as crucial as financial acumen.

Navigating shifts with agility and insight
The conversation further illuminates the critical importance of agility in the face of market shifts. Daniel’s narrative brings to life the concept of strategic adaptability — not just as a response to changing market conditions but as a proactive stance in anticipation of these changes. This agility, underpinned by...

Today, we are meeting with Ertan Can, the Founding General Partner of Multiple Capital, a venture capital fund based in Luxembourg.

Ertan has just closed his third fund with a target of $50M after investing already in companies like NP-Hard, Angular, Airstreet (1), Lunar, Fly, Inflection, Foreword by Declan, and Remote First Capital by Andi Klinger, Nomad by Marc McCabe.

Go to eu.vc for our core learnings and the full video interview 👀

Chapters:

00:54 Deep Dive into Ertan Can's Third Fund and Investment Strategy
04:07 Ertan's Journey from Family Office to Micro VC
06:04 Challenges and Learnings from Raising Fund III
08:13 Navigating the European Fundraising Landscape
13:47 Strategic Shifts in LP Engagement and Fundraising Realities
21:29 Understanding the Micro VC Ecosystem and Fund Size Dynamics
35:42 Evaluating Emerging Managers and Fund Performance
37:50 The Role of Randomness in Fund Success and Investment Strategy
39:55 Evaluating Investment Consistency and Strategy
40:34 The Importance of Building a Strong Network
41:07 Performance Metrics: Beyond Early Success
43:14 Assessing Portfolio Company Progress and Entry Valuations
53:23 The Rise of Fund of Funds in Europe
54:03 The Role of LPs in the Venture Ecosystem
01:03:02 Advice for Emerging Managers and Fundraising Challenges
01:13:42 Personal Reflections and Future Directions

Key Learnings from the episode
Acceptance of Power LawOne must acknowledge that not all VC funds, especially first-time funds, will be outperformers. Ertan works from an expectation that a minority, perhaps 10 to 20 percent, will become outlier funds, with the remainder performing average or below average.
Role of RandomnessErtan Can notes the randomness in fund success, citing that outliers in his experience have come from unexpected places, suggesting a belief in the potential rather than the certainty of each fund being a standout.Assessment
Beyond Immediate PerformanceThe transition from a first to a second fund often does not provide sufficient time to demonstrate real performance in terms of markups or DPI. Early successes or markups are seen as unsustainable for predicting future performance.
Consistency and FocusErtan values the consistency of the emerging manager with their initial strategy and approach. He looks favorably upon GPs who remain focused on their initial thesis and do not chase current market hypes or trends without a well-thought-out reason for any strategic shifts.
Networking and Co-investor QualityThe ability of a GP to build a network, attract follow-on investments from reputable names, and be invited to competitive rounds is viewed as more important than early performance metrics.
Entry Valuations as KPIsAn important KPI for Ertan is the range of entry valuations a fund manager secures. Investing at lower entry valuations, indicative of conviction and an earlier investment stage, is preferred over higher entry valuations that might follow market signals or competitiveness.
Brand Building and RecognitionBuilding a recognizable brand and becoming the go-to GP in a specific region, vertical, or niche is deemed more crucial than first-fund numbers. Recognition in the ecosystem can be a more significant indicator of future success than immediate performance data.

Advice for Emerging ManagersErtan advises maintaining consistency, having a well-defined market thesis, and resisting the urge to significantly upscale the fund size or pivot strategies to follow current hypes....

In this roundtable, we pull the curtain back on some of the core insights from our upcoming State of European VC Fundraising-report and dive deep on the impact of the tech reset for fundraising managers, discuss GP/LP dynamics and uncover how VCs best navigate the current fundraising environment. For the conversation, we brought together some of the most respected investors in our ecosystem:
Daniel Keiper-Knorr, Founding GP at SpeedinvestJoe Schorge, Founding GP at Isomer CapitalEkaterina Almasque, General Partner at OpenOceanChristian Hjort Pedersen, VC Fund Investor at IIP Denmark..And to moderate the whole thing; Tom Hughes Ellis & eu.vc’s Andreas Munk Holm.

Watch it on eu.vc 👀 

Get the full report before anyone else on floww.io/raise ! 👀

Together with our good friends at Isomer Capital and Floww, we’ve spent the winter digging into 300+ interviews as well as the latest market data and Isomer Capital’s vaulted data treasures to uncover how the tech reset has impacted the fundraising market in Europe and how leading VCs across the continent have changed their strategies, tactics and operational handbook.Filled with graphs, beautiful narratives and video interviews providing an entirely new and engaging experience, we’ve created an unparalleled learning experience you won’t just sift through, but actually spend real time with.

Join us as Tom Wilson from Seedcamp and Anthony Danon from Cocoa talk to Eva Spannagl, co-founder & Managing Director of Climatos.

Eva is a builder. She loves to build things and see their outcomes come to life, and she loves to work with people who are building something. Previously, she worked at McKinsey and at Moss, an early-stage FinTech startup from Berlin.

Now, Eva is leading Climatos, a company that builds mini solar panels for urban spaces while nurturing her passion for angel investing.

Go to eu.vc for our core learnings and the full video interview 👀

Chapters:

00:48 Eva's Journey from Consulting to Angel Investing
03:04 Eva's First Investment Story
03:55 The Motivation Behind Becoming an Angel Investor
05:25 Eva's Approach to Angel Investing
05:32 Memorable Deals and the Impact of Angel Investing
08:52 Eva's Investment Thesis and Strategy
11:03 Portfolio Diversification and Founder Support
18:46 The Value of Collaboration with VCs and the Angel Community
22:05 Core Learnings from Angel Investing
26:42 Testing for Founder Drive and Attitude