EUVC #181: Isomer Capital defies industry headwinds with an early first close of new €250m fund, Isomer Capital III
A conversation with Joe Schorge and Chris Wade (almost) live from SuperVenture
Earlier-than-expected first close of Isomer Capital’s third flagship fund continues proven strategy of investing in Europe’s best venture capital funds and their breakout companies
Isomer Capital’s track record and reputation as a ‘partnership’ investor has enabled the firm’s third flagship fund to reach a substantial first close ahead of schedule, despite headwinds in the macro-environment.
Since inception, Isomer Capital has invested in more than 70 early-stage venture capital (VC) firms across Europe, gaining exposure to 29 unicorns to date, including the likes of UiPath in Romania, Tractable, Deliveroo, Oyster in the UK, ManoMano, Sorare in France, Wefox in Germany, and Dune Analytics in Norway.
Isomer’s proven hybrid fund of funds strategy is one of the best ways for institutional investors to access the high potential of European technology venture capital, by supporting European entrepreneurs creating the technology products of tomorrow. As a testament to this, IC II saw its net asset value (NAV) continue to increase in Q4 2022 against macro headwinds, maintaining its ranking in the top 5% of its kind globally.
Isomer Capital has attracted investment from British Business Investments, the European Commission, and a range of endowments, pensions, corporates, and family offices from across Europe, Asia, and the United States.
Isomer Capital, the independent private investment firm focused exclusively on European venture capital (VC), has just announced the first close of its new €250m Isomer Capital III (IC III), with one third of its target subscribed by an early group of returning investors. The fund’s fast progress is a testament to its strategy, past performance and a strong base of supporters, as well as the resilience of the sector in the face of macroeconomic headwinds.
The fund’s first close was held four months earlier than originally planned, leveraging Isomer’s reputation and partnership model to quickly secure access to four early-stage VC firms that held their funds open to welcome Isomer into their own final closes.
Although the current economic climate is challenging, the European technology ecosystem has proven to be resilient, innovative and highly productive, bringing exciting new technology products and businesses to the world at an increasing velocity. Our team has built a strong brand and reputation as a ‘value-add’ limited partner (LP), and the swift progress of Isomer Capital III is a testament to their good work. We will deploy IC III over the next two years, which given the powerful combination of Europe’s maturing talent base and prudent valuations we believe can be some of the best vintage years in the VC sector.
Joe Schorge, Managing Partner at Isomer Capital
IC III continues the firm’s successful strategy of investing in Europe’s best emerging VC funds and growth companies, enabling investors to access some of the most competitive, exciting and high-potential young technology businesses across the UK and Europe. The fund follows the same strategy and sizing of its predecessor, IC II, which is performing well as its net asset value (NAV) continued increasing in Q4 2022 against macro headwinds, maintaining its ranking in the top 5% of its kind globally.
As a pioneer of the VC ‘fund of funds’ model in Europe, with a track record of backing some of the best VCs and emerging managers across the continent, we will strive to continue delivering strong performance and consistent returns with Isomer III.
Chris Wade, Partner and co-founder of Isomer Capital
A commitment of up to €60m was made by British Business Investments, a commercial subsidiary of the British Business Bank. British Business Investments is a repeat and early investor in Isomer, having previously committed to Isomer II and Isomer Capital Opportunities in 2021. Alongside British Business Investments and the European Commission, Isomer Capital has attracted a range of endowments, pensions, corporates, and family offices from across Europe, Asia, and the United States. Investors include the likes of Fondaco, Happiness Capital, Italmobiliare, Nikon, PwC Germany, and one of the largest foundations in Germany and a well-known US endowment.
Isomer Capital is a specialist fund of funds manager, with well-established venture and growth capital investment capabilities. Following our support for Isomer’s ICII in 2020 and the Opportunities Fund in 2021, we are pleased to commit to Isomer Capital III to continue our support for innovative growing businesses.
Judith Hartley, CEO of British Business Investments
Since its inception, Isomer Capital has invested in over 70 VC funds, with groups like Atlantic Labs, Entrepreneur First, FRST, OpenOcean, OTB, and Seedcamp, as well as 31 co-investments and secondary transactions. This has enabled Isomer and its LPs to gain exposure to 29 unicorns (approximately 10% of Europe’s total number of unicorns).