A new wave of Solo GP VC is coming to Europe and Hypernova hopes to fuel it

A new wave of Solo GP VC is coming to Europe and Hypernova hopes to fuel it

The US has had its own venture capital fund managers for many years, but the trend is just starting to catch on in Europe. One of the most recent is Underline Ventures, started this year by Bogdan Iordache in Romania. His career trajectory to being a solo GP fits the profile: a former entrepreneur, a key player in the Eastern European tech scene, a founder of the How to Web conference and a former VC in a multi-partner team .

Above all, what Europe needs most are these “funds of funds” specialized in working with this new wave of European solo GPs.

Hypernova, a $25 million fund launched in June, was founded by seasoned investor Tugce Ergul. He plans not only to invest in other funds, but also directly in startups. Ergul was formerly with Angel Labs, an “investor accelerator”, spread across 44 countries.

Speaking to TechCrunch, Ergel said: “There is a new wave of funds coming. We are talking about successful founders who are now starting their own funds to invest in new entrepreneurs. There are partners who leave their previous funds by starting their own funds, because it is now easier and cheaper than ever to start a fund. And there is more support for solo capitalists.”

So how does it work? Hypernova invests 40% of its fund in Solo GP funds and the rest directly in startups, with 50% in the US and 50% in Europe.

Ticket sizes will be $500,000-750,000 in these Solo GPs who are raising their first fund and Hypernova will target not only financiers but potentially journalists, angel investors, former entrepreneurs or associates/partners exiting their former VC fund.

Hypernova offers support to new GPs with regards to fund management, necessary technology, LP introduction, brand support and co-investment opportunities

Ergel added that in the past no LPs gave Solo VC money: “Now there’s a new world out there, you can find money for LPs if you’re just one person and one GP. Initial funds have become cheaper. You can set up a fund for $10,000 and your fund administration costs are really low. So it’s just making access a lot easier for these fund managers. So we want to support those fund managers. Then this is where the hybrid play comes in because the other half of the fund is a direct investment vehicle. And we will invest together with these funds that we invest in, or we will invest in the next rounds in the winners of these fund managers.

For its direct investments, Hypernova plans to focus on automation, retail, finance, logistics, transportation and shipping, with ticket sizes from $250,000 to 500,000, and will have no onboard seats.

Hypernova claims to be the first female-led solo GP fund-of-funds in Europe and the first female-led solo GP fund-of-funds in the US

Since its phased launch in June, Hypernova says it has:

– Invested in an early stage infrastructure fund based in San Francisco
– A London-based fund that manages athletes’ money
– A solo GP fund based in Berlin
– Deeptech fund based in Los Angeles
– San Francisco-based fund investing in secondary LPs (Fund II).
– Invested directly in a San Francisco-based hydrogen marketplace
– DevOps for carbon removal companies based in Berlin
– London based cohort based learning and talent platform called Neol
– a Micro-fulfillment platform to optimize the last mile

It now plans to open a London office and hire a London-based partner from January 2023.

And it’s launching an LP diversity and inclusion program to bring new investors into the game of investing in funds that they could co-invest in with very small amounts.

“I’m a solo venture capitalist myself,” Ergel added. And this is also one of the novelties for the markets. I started this because I have encountered so many difficulties and problems myself being a solo GP. If I started this in the US as a pure US focused US fund, I would have closed it in six months. But because I wanted to do something that connected the US and Europe, it took a lot longer.”

#wave #Solo #coming #Europe #Hypernova #hopes #fuel

Leave a Reply

Your email address will not be published. Required fields are marked *