Forestay Capital, a European venture capital (VC) firm specialising in fast-growing enterprise technology companies, has closed its second fund at $220 million. Forestay II will focus on investments in the Enterprise Artificial Intelligence (AI) and Software as a Service (SaaS) sectors, targeting early-growth companies with high-conviction investments.
Forestay targets visionary companies at the early growth stage, typically making lead investments in the $10-15 million range. They partner with these companies during critical inflexion points to accelerate their growth trajectory.
Just a while back, we also reported about Female-led VC Seaya that closed €300M fund to invest up to €40M in impact-driven companies.
The success of their first fund, Forestay I, provides evidence of this approach. Forestay I invested in 13 companies, with three achieving unicorn status (valuation exceeding $1 billion) and two experiencing successful acquisitions. The average annualised gross internal rate of return (IRR) for Forestay I exceeded 50%.
Forestay II has already begun deploying capital, partnering with startups like Veriti (cybersecurity) and Neural Concept (engineering intelligence) in the enterprise AI space.
Leveraging experience and networks for portfolio success
Forestay Capital was established in 2018 as an affiliate of B-FLEXION, a private investment firm founded by the Bertarelli family. Frederic Wohlwend, former Global Chief Digital Officer of Serono and Merck KGaA, leads Forestay. Wohlwend emphasises the firm’s hands-on approach and commitment to high-conviction investments.
“The close of Forestay II is evidence of the success of our investment strategy, underscored by a hands-on approach in our commitment to make high-conviction investments,” stated Wohlwend. “Our strategic focus allowed us to cultivate a concentrated portfolio of future category leaders in Enterprise AI and SaaS and we are well-positioned to continue to drive innovation and scale within the sector with Forestay II.”
This focus on practical support is exemplified by a quote from Achi Rotem, Founder and CEO of K2View, a company in Forestay I’s portfolio. Rotem highlights the value Forestay provided beyond just capital.
“In recent years, K2View was courted by several world-class VC and PE brands,” said Rotem. “We turned them all down – until we met Forestay; even before closing the Forestay team introduced us to senior executives at tier-1 potential customers, demonstrating not only a strong belief in our offering, but more importantly, putting their own network on the line.”
Forestay leverages B-FLEXION’s network and expertise across Europe and the US to support its portfolio companies. Forestay II has also secured backing from prominent family offices, including Anaïs Ventures, the investment vehicle for members of the Firmenich family.
What do we think about the update
The closing of Forestay II signifies the firm’s continued commitment to investing in and supporting high-growth enterprise AI and SaaS companies in Europe. With a successful track record and a strong network, Forestay is well-positioned to identify and nurture the next generation of European technology leaders. The performance of Forestay II’s portfolio will be a key indicator of the firm’s ability to maintain its successful investment strategy in a dynamic and competitive market.
