In a move that emphasizes its commitment to nurturing deep tech innovation, Fly Ventures has announced the closure of its €80 million Fund III. This development comes as a response to the limited funding options available for technical founders tackling complex problems in Europe. Fly Ventures, with a robust presence in key cities such as Berlin, London, Paris, and Zurich, seeks to fill this gap by partnering with deeply technical founders from the earliest stages. This fund aims to support innovative startups by providing crucial financial backing and guidance during their inception phase.
Fly Ventures has consistently targeted the deep tech sector, highlighting a dedication to supporting startups that might struggle to find adequate funding elsewhere. Unlike traditional investment models that apply generic software-as-a-service logic, Fly Ventures focuses on the unique needs of technically challenging projects. This approach is particularly beneficial for companies in the early stages of development, where specific expertise and support can be pivotal for growth and success.
How Does Fly Ventures Support Startups?
Fly Ventures engages with founders through a collaborative approach, often initiating relationships months before a company is formally established. By leveraging a broad network, Fly Ventures connects with individuals likely to start innovative companies, such as those returning from tech hubs like the US. This proactive strategy enables Fly Ventures to play an integral role in the company formation process, ensuring that startups receive guidance from the outset.
What Is Fly Ventures’ Investment Strategy?
Fly Ventures primarily invests between €1 to 4 million in early-stage rounds, ranging from €2 to 8 million. The firm’s success as a first-check investor is evident in its association with several standout companies, including Wayve, Lakera, and Orbital Materials. Notably, a significant portion of Fly’s portfolio companies secure follow-on funding or acquisitions, surpassing the European industry average for seed-stage venture capitals.
In a broader context, Fly Ventures’ investments reflect a strong emphasis on artificial intelligence, which accounts for approximately 45% of its portfolio. The remaining investments are distributed between vertical applications, industrial tech, and developer tools. This diversified approach ensures that Fly Ventures can support a wide array of innovative technologies poised to make significant impacts across various industries.
Fund III boasts backing from prominent investors, including the European Investment Fund and KfW Capital, underscoring Fly Ventures’ credibility and appeal in the investment community. Such partnerships are crucial for maintaining the flow of capital to promising startups, further enhancing their ability to innovate and grow.
Fly Ventures’ latest fund closure underscores its strategic role in fostering deep tech advancements across Europe. By providing targeted support to technically driven founders, Fly Ventures not only bridges the funding gap but also propels startups toward sustainable growth. As the landscape for tech funding continues to evolve, Fly Ventures remains a pivotal player, ensuring that groundbreaking ideas receive the backing they need to thrive. With a keen focus on AI and industrial technology, Fly Ventures is well-positioned to drive future innovations that could reshape industries and enhance technological progress.
