Isomer Capital, an independent private investment firm based in London which backs European VCs like Entrepreneur First, Seedcamp, Breega and more has achieved the first close of its highly anticipated Isomer Capital III (IC III) fund, securing €250 million in commitments. The venture capital (VC) firm revealed that one-third of the target amount was subscribed by a group of returning investors, highlighting the trust and confidence in Isomer Capital’s investment strategy.
British Business Investments, a commercial subsidiary of the British Business Bank, has also pledged its support to IC III by committing up to €60 million. This commitment marks their third investment in Isomer Capital, following their participation in Isomer II and Isomer Capital Opportunities in 2021. The involvement of British Business Investments further reinforces the fund’s potential and credibility.
Isomer Capital has successfully attracted a diverse range of investors, including endowments, pensions, corporates, and family offices from Europe, Asia, and the United States. Notable investors that have joined the venture include Fondaco, Happiness Capital, Italmobiliare, Nikon, and PwC Germany, alongside one of Germany’s largest foundations and a renowned US endowment. The presence of such prestigious investors underscores the widespread interest and confidence in Isomer Capital’s investment approach.
Surpassing expectations with an early first close
The first close of IC III took place four months ahead of schedule, demonstrating the reputation and partnership model that Isomer Capital has built over the years. This early achievement allowed Isomer Capital to gain access to four early-stage VC firms that had extended their fund closing timelines to welcome Isomer into their own final closes. This strategic advantage speaks volumes about Isomer Capital’s standing within the industry.
Joe Schorge, Managing Partner at Isomer Capital, expressed his optimism about the European technology ecosystem despite the challenging economic climate. Schorge stated, “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.”
Continued focus on Europe’s emerging VC funds and growth companies
IC III will continue the successful investment strategy employed by its predecessor, IC II. The fund’s primary focus is to invest in Europe’s best emerging VC funds and growth companies, providing investors with access to highly competitive, exciting, and high-potential young technology businesses across the United Kingdom and Europe. IC II has demonstrated strong performance, with its net asset value (NAV) steadily increasing in Q4 2022, despite macroeconomic challenges, maintaining its ranking among the top 5% of similar funds globally.
A track record of success
Since its inception, Isomer Capital has invested in over 70 VC funds, including prominent groups like Breega Atlantic Labs, Entrepreneur First, FRST, OpenOcean, OTB, and Seedcamp. The firm has also engaged in 31 co-investments and secondary transactions. Through these investments, Isomer Capital and its limited partners (LPs) have gained exposure to 29 unicorns, representing approximately 10% of Europe’s total number of unicorns. This track record of success positions Isomer Capital as a pioneering force in the European VC market.
Looking to the future
Chris Wade, Partner and co-founder of Isomer Capital, emphasised the firm’s commitment to delivering strong performance and consistent returns with Isomer III. “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.”
Joe Schorge, Managing Partner at Isomer Capital, said: “Though 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.”
Judith Hartley, CEO of British Business Investments, said: “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.’’
