Heartcore Capital bets on Europe with a $200M fund for

Heartcore Capital bets on Europe with a $200M fund for

Heartcore Capital, one of many few VCs to concentrate on shopper expertise, has raised a $200 million early-stage fund for these sorts of startups throughout Europe. Heartcore IV, the agency’s flagship funding car, might be supported by Heartcore Development Beta, a $50 million “alternative fund” for follow-on rounds in shopper tech.

The agency stated each automobiles have been oversubscribed. Buyers within the funds embrace Hermann Haraldsson (Boozt), Andrew Stalbow (Significantly), Phillip Chambers and Kasper Hulthin (Peakon), Paul Crusius and Marco Vietor (Audibene), Morten Strunge (Podimo, Mofibo) and Max-Josef Meier (Finn).

Most European VCs are usually B2B/SaaS targeted, however Heartcore has specialised in shopper expertise VC.

In Heartcore’s favour is the truth that there are 500 million customers within the EU spending an annual $11 trillion, making it on-par with the U.S. shopper market. It additionally has a bigger center class. And whereas B2B platforms should normally win the U.S. or at the very least originate from there, the B2C market tends to be extra native.

The pandemic has additionally acted as an accelerant for shopper expertise, forcing populations to take up digital providers reminiscent of on-line groceries.

Heartcore has had a 14-year historical past in shopper tech, with its portfolio elevating near $1 billion in follow-on financing over the previous 12 months, the corporate stated.

Swedish shopper private finance supervisor Tink’s lately offered to Visa for $2.2 billionN, and Heartcore was the most important enterprise investor on the time of acquisition.

It has additionally invested in digital eating places (Taster), open banking (Tink), quick-commerce (Weezy), style e-commerce (Boozt), mobile agriculture (Gourmey), digital well being (Kaia Well being, Pure Cycles) and subscription commerce (La Fourche, Italic).

Max Niederhofer, Heartcore Capital associate, instructed me: “Europe traditionally has been nice at shopper tech. You’ve had Skype, Final fm, Spotify and Supercell. All of these are shopper firms. I feel the factor that’s occurring is that loads of the patron champions are home champions. Lando is large in Germany. The largest insurance coverage tech firm in France is definitely a French firm. So, as expertise disrupts each shopper spend class, there’s loads of huge firms being in-built Europe which can be primarily home or regional, and that’s the place we really feel there’s loads of room to play.”


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