Earlier this month, La Famiglia, a Berlin-based VC firm that invests in seed-stage European B2B tech startups, disclosed that it raised a second fund totaling €50 million, up from its debut fund of €35 million in 2017.
The firm writes first checks of up to €1.5 million in European startups that use technology to address a significant need within an industry. It’s backed 37 startups to date (including Forto, Arculus and Graphy) and seeks to position itself based on its industry network, many of whom are LPs.
La Famiglia’s investors include the Mittal, Pictet, Oetker, Hymer and Swarovski families, industry leaders Voith and Franke, as well as the families behind conglomerates such as Hapag-Lloyd, Solvay, Adidas and Valentino. In addition, the likes of Niklas Zennström (Skype, Atomico), Zoopla’s Alex Chesterman and Personio’s Hanno Renner are also LPs.
Meanwhile, the firm describes itself as “female-led,” with founding partner Dr. Jeannette zu Fürstenberg and partner Judith Dada at the helm.
With the ink only just dry on the new fund, I put questions to the pair to get more detail on La Famiglia’s investment thesis and what it looks for in founders. We also discussed how the firm taps its “old economy” network, the future of industry 4.0 and what La Famiglia is doing — if anything — to ensure it backs diverse founders.
TechCrunch: You describe La Famiglia as B2B-focused, writing first checks of up to €1.5 million in European startups using technology to address a significant need within an industry. In particular, you cite verticals such as logistics and supply chain, the industrial space, and insurance, while also referencing sustainability and the future of work.
Can you elaborate a bit more on the fund’s remit and what you look for in founders and startups at such an early stage?
Jeannette zu Fürstenberg: Our ambition is to capture the fundamental shift in value creation across the largest sectors of our European economy, which are either being disrupted or enabled by digital technologies. We believe that opportunities in fields such as manufacturing or logistics will be shaped by a deep process understanding of these industries, which is the key differentiator in creating successful outcomes and a strength that European entrepreneurs can leverage.
We look for visionary founders who see a new future, where others only see fragments, with grit to push through adversity and a creative force to shape the world into being.
Judith Dada: Picking up a lot of signals from various expert sources in our network informs the opportunity landscape we see and allows us to invest with a strong sense of market timing. Next to verticals like insurance or industrial manufacturing, we also invest into companies tackling more horizontal opportunities, such as sustainability in its vast importance across industries, as well as new ways that our work is being transformed, for workers of all types. We look for opportunities across a spectrum of technological trends, but are particularly focused on the application potential of ML and AI.