Huxton Ventures, a London-based start-up VC firm known for supporting the British giant’s Babylon Health, Doctors and Delivery, is announcing its second fund, which closed at less than $ 100 million. Is.
That’s more than double the size of the firm’s 40 40 million debit fund in 2013, when new vice-chancellors setting up shops in Europe were still seen as a novelty. How has the ecosystem evolved since then?
Founded by Rob Niaz and Hussein Kanji – Fidelity and Excel Alums, respectively – and joined last year by new partner and chief operating officer, Rob Ludwig, is a self-proclaimed strategy of Huxton and is still a Is a start that can be extended globally. “Large, category-defining leaders” in the neoclassical industries. The sector is agnostic and typically invests between 500,000 and 5 million seed in pre-seed, seed and Series A stages.
“We have a deliberate anti-theatrical strategy, like we did in the first fund,” Kanji told TechCrunch. “Our job tomorrow is to bring back the global tech winners from Europe. We think most of them come from new market segments. [are] Just being born now.
“We also have a check size compared to some funds because we allocate a small portion of the fund to pre-seed companies, where we can place some risky bets, where we can specialize around the founders themselves or around a particular market. Sure, Niaz added. “For example,” Quantum Computing may have been ready for commercialization years ago, but we think it’s important to have some exposure in front of the founders, which we think is extraordinary. ” “
To this day, this is a strategy that seems to pay off. According to DellRoom, the firm’s portfolio is currently valued at more than billion 7 billion, while Hookston’s first fund has the largest proportion of unicorns invested.
Digging deeper, there was support from 17 companies in Fund One, which has so far helped three startups, six acquisitions and two resumes (“one good, one bad,” says Kanji). “Ten are leaving now, but one of them is dead, and I don’t have to start badly. Of the other eight companies, I would say a handful of people have a shot of greatness.” Collected 100 million, and we are big fans of Dylan [Collins] And his team is working in Super Voice.
Meanwhile, industry observers have learned that Hackston has been trying to raise this second fund on the line for some time, but even before the British patients set foot in the British capital, Brexit raised VC’s own funds. Not everyone was aware of the way in which his efforts were thwarted. To become an anchor investor in Hoxton.
Although the majority of this second fund was shut down in early 2019 (but not announced), Kanji, who describes the team as the worst “terrible” fundraiser, says The Vice Chancellor had a really weird experience with the European Investment Fund, let’s come back at least a year later.
“Yes, unfortunately the EIF publicly denied this but they closed the new relationship of the fund in the United States after activating Article 50, so due to the length of their process we have to spend a lot of time in it. Had to “By that time we had other promises that were gone, so we probably lost and then lost and then finally we picked up half of what we had raised. Although the British patient capital was very good in the process and that Helped ensure that we have some continuity as an anchor investor. We were very happy to work with them. “
To that end, the new fund began investing in early 2019 and has already made 20 investments in most sectors, including Fabric Nano, a next-generation enzyme business. FY! , A homeware market; Kheron Medical, Artificial Intelligence Radiology Startup. And ready, an online education company. I have also mentioned that about 36% of the fund has been invested so far since the onset of the corona virus crisis.