Announcing our investment into First Momentum Ventures Fund II 🤖
EUVC
00:00
Fund Performance and Scout Program
This chapter discusses the performance of their first fund, the graduation rate of their portfolio, and the comparison with other funds. It also delves into their scout program, the role of super connectors, and the importance of having scouts to source potential investments.
Play episode from 25:36
Transcript
Transcript
Episode notes
Few periods are as busy as the end of the year. And that is definitely true for us at eu.vc this year as we announce yet another investment that we’ve been working hard on behind the scenes throughout the summer and fall. Consequently, it’s with great pride and pleasure that we announce our angel LP syndicate investment into First Momentum Ventures 🥳.
We’ve known the team for a little more than a year now and have truly enjoyed following them and working with them throughout their raise. Excellent execution, great reputation from all who have come across them and a team that’s set on a path that definitely looks like one that will lead to greatness.
We’re honored to have been invited along for the ride and will make sure that you will all get to hear much more from this team in the future. But now, we invite you to start by getting to know them via this pod episode and our spotlight article on eu.vc 👀🎧
Overview:
First Momentum Ventures (FMV), established in 2017, is a pioneering venture capital firm based in Karlsruhe, Germany, concentrating on pre-seed investments in European technology-driven B2B startups. They have been trailblazers in pre-seed venture capital in Germany since 2018, emphasizing a unique pre-seed strategy with a strong technical DNA. The team behind had its start supporting startups from a pre-seed campus incubator they started in 2015, which have collectively attracted over 500m € in capital​​​​.
Fund II Overview:
The launch of FMV's €35M Fund II targets technical pre-seed founders in the DACH region (Germany, Austria, Switzerland) and across Europe, focusing on sectors like Deep Tech, Industrial & Climate Tech, Dev Tools & Data, and Enterprise SaaS. They aim to build a portfolio of around 35 companies, targeting approximately 5% ownership with an average initial ticket size of €0.5m and keeping around 30% in follow-on reserves​​.Investment
Performance and Strategy:
FMV Fund I (2018 vintage) demonstrates top quartile performance with a portfolio size of 27 startups, a portfolio multiple of 1.97, and a total IRR of 28%. There are already several clear outliers visible that have a large potential to grow into fund returners (i.e. returning the entire fund by themselves). The follow-on capital raised by these startups amounted to 150m€, highlighting the fund's success in backing scalable and investment-worthy ventures​​.
Unique Approach and Value Addition: FMV stands out for its deep technical understanding and laser-focused pre-seed DNA. Their team of engineers & scientists, connected to leading European universities and industry decision-makers, brings a unique perspective to investing. They are known for rapid processes, candor, and risk-affine technical founder partnerships - true to their credo of “engineers at heart, investors by choice”. FMV's support extends beyond funding to include a dedicated support platform for a holistic support tailored specifically to super early technical companies.
Investment Thesis:
FMV's investment thesis is focused on supporting European deep-tech champions at the onset of their journey. They identified a gap in the market where tech founders face challenges due to a lack of true deep-tech VCs, risk aversion, and a limiting focus on SaaS by European investors. FMV aims to address these gaps by leveraging its technical expertise and network to support founders in overcoming these challenges​​.
Conclusion:
First Momentum Ventures represents a strategic investment opportunity, especially for those interested in early-stage, technology-driven B2B startups in the DACH region. Their technical expertise, strong network, and proven track record in supporting startups from pre-seed to scale make them a compelling choice for investors looking to engage with innovative European startups.Given their performance, unique approach, deep technical expertise, and perfect community fit with our approach to LP investing at eu.vc, we believe investing in First Momentum Ventures' Fund II presents one of the best opportunities currently available in the market to participate in the growth of Frontier Deep Tech Startups in the DACH region at the earliest stages.
We’ve known the team for a little more than a year now and have truly enjoyed following them and working with them throughout their raise. Excellent execution, great reputation from all who have come across them and a team that’s set on a path that definitely looks like one that will lead to greatness.
We’re honored to have been invited along for the ride and will make sure that you will all get to hear much more from this team in the future. But now, we invite you to start by getting to know them via this pod episode and our spotlight article on eu.vc 👀🎧
Overview:
First Momentum Ventures (FMV), established in 2017, is a pioneering venture capital firm based in Karlsruhe, Germany, concentrating on pre-seed investments in European technology-driven B2B startups. They have been trailblazers in pre-seed venture capital in Germany since 2018, emphasizing a unique pre-seed strategy with a strong technical DNA. The team behind had its start supporting startups from a pre-seed campus incubator they started in 2015, which have collectively attracted over 500m € in capital​​​​.
Fund II Overview:
The launch of FMV's €35M Fund II targets technical pre-seed founders in the DACH region (Germany, Austria, Switzerland) and across Europe, focusing on sectors like Deep Tech, Industrial & Climate Tech, Dev Tools & Data, and Enterprise SaaS. They aim to build a portfolio of around 35 companies, targeting approximately 5% ownership with an average initial ticket size of €0.5m and keeping around 30% in follow-on reserves​​.Investment
Performance and Strategy:
FMV Fund I (2018 vintage) demonstrates top quartile performance with a portfolio size of 27 startups, a portfolio multiple of 1.97, and a total IRR of 28%. There are already several clear outliers visible that have a large potential to grow into fund returners (i.e. returning the entire fund by themselves). The follow-on capital raised by these startups amounted to 150m€, highlighting the fund's success in backing scalable and investment-worthy ventures​​.
Unique Approach and Value Addition: FMV stands out for its deep technical understanding and laser-focused pre-seed DNA. Their team of engineers & scientists, connected to leading European universities and industry decision-makers, brings a unique perspective to investing. They are known for rapid processes, candor, and risk-affine technical founder partnerships - true to their credo of “engineers at heart, investors by choice”. FMV's support extends beyond funding to include a dedicated support platform for a holistic support tailored specifically to super early technical companies.
Investment Thesis:
FMV's investment thesis is focused on supporting European deep-tech champions at the onset of their journey. They identified a gap in the market where tech founders face challenges due to a lack of true deep-tech VCs, risk aversion, and a limiting focus on SaaS by European investors. FMV aims to address these gaps by leveraging its technical expertise and network to support founders in overcoming these challenges​​.
Conclusion:
First Momentum Ventures represents a strategic investment opportunity, especially for those interested in early-stage, technology-driven B2B startups in the DACH region. Their technical expertise, strong network, and proven track record in supporting startups from pre-seed to scale make them a compelling choice for investors looking to engage with innovative European startups.Given their performance, unique approach, deep technical expertise, and perfect community fit with our approach to LP investing at eu.vc, we believe investing in First Momentum Ventures' Fund II presents one of the best opportunities currently available in the market to participate in the growth of Frontier Deep Tech Startups in the DACH region at the earliest stages.
The AI-powered Podcast Player
Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!
