Luxembourg-based Mangrove Capital Partners, one of Europe’s leading early stage venture capital firms, has raised $170M for its latest “Mangrove V Fund” to invest across Europe and Israel. The fund matches its previous funds, and, says the firm, was completed inside two months with 90 per cent coming from returning investors. Mangrove has been one of Europe’s most successful VCs, backing unicorns such as Skype and Wix.com. So far the firm has invested in over 130 companies since 2000.
Mark Tluszcz, co-founder and CEO said in a statement: “We like to take big bets very early and support our best portfolio companies through multiple rounds of financing to build material stakes. We prefer to invest in unproven or unusual technologies rather than chase the latest fad.”
The move is in contrast to much bigger fund-raises from other European VCs in the last year or so, including EQT Ventures, Atomico Ventures and Index Ventures, among others. Instead, Mangrove has opted for a smaller fund in “in order to maximise the performance of our funds – the data shows that larger funds have diminishing returns” the company said.
The smaller fund size means smaller investments, BUT potentially bigger returns IF the startup does well. Mangrove put $8m into Wix.com which resulted in a $550m exit when it became the largest tech IPO to come out of Israel. Mangrove is also famous for being the first investor in Skype, turning a $2m investment into $200m.