BOOOM, a newly established microfund, has announced its intent to invest between €100,000 and €400,000 in around 30 companies at the angel-only, Pre-seed, and Seed stages across Europe. Backed by institutional investors and founders of high-profile unicorns like Celonis, Coupa Software, King.com, and Flix, BOOOM aims to empower early-stage European B2B software startups.
BOOOM’s €17 million fund is spearheaded by Felix Plapperer, formerly a partner at B2B SaaS VC firm SquareOne. The fund is designed to offer not just financial backing but also valuable mentorship and networking opportunities. Founders from successful tech ventures such as sennder will provide dedicated 1:1 mentoring to portfolio companies, guiding them through the challenges of scaling a VC-backed company.
Mentorship and Network Support
David Nothacker, Julius Koehler, and Nicolaus Schefenacker, the founders of sennder, will be acting as mentors, providing strategic guidance and sharing their extensive experience with each startup team. This mentorship is intended to last between 12 to 18 months, during which these mentors will remain operationally involved with their own company but will streamline their startup investments through BOOOM.
Christian Gahr, General Counsel at sennder, will serve as the legal partner for BOOOM, ensuring that all portfolio companies receive comprehensive legal support on various matters, such as negotiating shareholder agreements or founder salaries with VC investors. This approach aims to minimize legal roadblocks and optimize the companies’ growth trajectories.
Investments and Collaborations
BOOOM has already made several strategic investments, either independently or alongside renowned venture firms like Sequoia Capital, Index Ventures, Creandum, Point Nine, or Accel. Investments include Timberhub, a B2B marketplace for timber trade, Ankar AI, a tool for AI licensing and infringement detection, and Spread AI, an AI-driven system for creating Digital Twins of complex engineering products in automotive and aerospace sectors.
The fund’s closing was oversubscribed, reflecting strong interest and confidence from a diverse LP base that includes institutional investors, family business entrepreneurs, and over a dozen partners from top-tier VC funds. This extensive network is expected to provide a robust support system for BOOOM’s portfolio companies.
Key Inferences
– BOOOM’s focus on early-stage B2B software companies addresses a critical funding gap in Europe.
– The mentorship model involving successful tech founders can offer unique strategic benefits to startups.
– The fund’s oversubscription indicates strong market confidence in BOOOM’s approach and leadership.
By leveraging the expertise and networks of its backers, BOOOM is positioned to provide comprehensive support beyond mere financial investment. This multi-faceted approach, combining mentorship, legal support, and networking opportunities, aims to significantly enhance the success rates of the startups it invests in. Given the challenging landscape for early-stage funding, particularly in the B2B software space, BOOOM’s model could serve as a blueprint for future funds seeking to make substantial impacts in the startup ecosystem.
