- White Star Capital has closed Fund IV with $250 million in capital, roughly $100 million short of its original goal.
- Even though Fund IV fell short, the firm has still raised more than $350 million since late 2025 through several investment vehicles.
- So far, the fund has invested in six companies, such as Sequen in New York and Veesion in Paris.
White Star Capital closed Fund IV at about $100 million below its original target and is much smaller than the $360 million raised for Fund III in 2021.
Founded in 2014 by Eric Martineau-Fortin and Jean-Francois Marcoux, the firm started with just five people in New York, Montreal, and London, but now has more than 50 employees in eight offices. The company is headquartered in the UK and New York, with other hubs in Paris, Toronto, Milan, Berlin, the Middle East, and Asia.
The firm usually leads Series A and B rounds, investing between $5 million and $15 million; about half of Fund IV is allocated to follow-on investments. With a new North American Seed Fund and several special purpose vehicles, White Star Capital has raised more than $350 million in new capital since late 2025.
Institutional limited partners and a focus on AI investments
Fund IV’s investors include Canadian pension and public funds such as Fonds de solidarité FTQ, Investissement Québec, Desjardins, and Teralys Capital, as well as European institutions such as CDP Equity, Swen Capital Partners, Groupe ADP, and the States of Guernsey pension fund.
The fund has invested in Sequen, Veesion, OatFi, AMI Labs, Tetrix, and Trayd. It is investing capital in AI-focused startups across its hubs, including foundation model development in Paris, vertical AI applications in New York, and physical AI in Montreal.
White Star Capital has had 22 exits from a portfolio of more than 100 companies. Some examples include TheGuarantors being acquired by Warburg Pincus, Sun Life buying Dialogue Health Technologies, and Nestlé acquiring Freshly.
Current portfolio companies include Butternut Box, FINN, and Vention.
Despite an evolving market, our thesis remains the same. We are looking to partner with founders who have the ambition, talent, and product to scale internationally, and, in return, we provide the global network and operational expertise they need to do so, co-founders of White Star Capital write in a Medium post announcing the fund.
A fund reduced by choice or by necessity
It is not always clear from the outside whether a firm is changing by choice or because fundraising has become harder. White Star Capital’s use of several investment vehicles could mean either.
Many multi-stage venture firms in Europe and North America now prefer several smaller, focused funds rather than one large flagship, as limited partners have become more selective since 2021.
The $250 million close shows what White Star Capital has raised so far, but only future exits will show if this strategy works.
