Flashpoint Venture Capital, a London-based technology investment firm, announced that it has closed $102M for its VC III fund after securing $20M from a Hungarian fund manager, Széchenyi Funds. The latest close allows VC III to reach its target fund size of $100M.
While Széchenyi Funds focuses on financial institutions, large corporates, and more mature SMEs, it provides startups with “smart money” through domestic incubators and accelerators, primarily through fund of funds investments.
Flashpoint is an international investment group with over $450M AuM and a focus on Western Tech Companies founded by ex-pats from Emerging Europe & Israel.
Currently, Flashpoint manages six venture funds – four VC funds, a Venture Debt Fund, and a Secondary Fund.
Investors in Flashpoint’s funds include more than 130 major family offices and HNWIs. The company has offices in London, Tel-Aviv, Budapest, Warsaw, Riga, and Nicosia.
To date, the funds have made investments in over 55 companies, including names such as Guesty, Chili Piper, and Office RnD. In addition, the UK VC has completed eleven exits, including selling its stakes in Shazam (to Apple) and Chess.com (to PokerStars founders and General Atlantic).
Michael Szalontay, co-founder and General Partner at Flashpoint, says, “We are delighted to reach our initial goal of over $100M in commitments for our VC III fund despite the extremely challenging backdrop for fundraising. Being a Hungarian, I am especially proud that our first institutional investor is from Hungary. We are pursuing a shared mission in developing the venture capital ecosystem in Hungary and the Carpathian basin.”
Alexander Konoplyasty, co-founder, General Partner at Flashpoint, and the Managing Partner for Flashpoint VC III, says, “We have a tailored strategy to invest in b2b software companies in Western markets where we are particularly focussing on founders who originate from Emerging Europe and Israel. Expats from Eastern Europe and Israel founded 1/5th of Western unicorns – they are much more cost-efficient than an average US startup, and there is tremendous pent-up demand for capital among them. We, therefore, bring a strong cultural fit and a wide business network, and we look forward to equipping our founders for the next phases in their development.”
Széchenyi Funds is the most active investor in the domestic capital market. It manages assets of over $400M, including 80+ portfolio companies. It works closely with its owner, the Rudolf Kalman Foundation for the Óbuda University, which allows for a high degree of synergy between technical and economic disciplines and practical business.
The Széchenyi Funds aim to contribute to the long-term growth and stability of the Hungarian economy by investing capital in high-value-added enterprises.
Dénes Jobbágy, CEO and president of Széchenyi Funds, adds, “We know from experience that Emerging Europe talent and professional investment is a highly efficient combination. Especially in the following years when increasing cost efficiencies through technology will be more important than ever.”