Key Takeaways
- • Flashpoint Venture Capital closed its VC III fund at US$102 million, surpassing its US$100 million target, according to a Business Wire announcement dated August 4, 2022.
- • Hungarian fund manager Széchenyi Funds committed US$20 million to VC III, becoming Flashpoint's first institutional limited partner.
- • The close was achieved despite what Flashpoint described as an "extremely challenging backdrop for fundraising."
- • Flashpoint manages roughly US$450 million in AUM across six funds and invests in Western tech companies founded by expats from Emerging Europe and Israel.
Summary
Flashpoint Venture Capital, a London-headquartered technology investment firm, announced a US$102 million final close of its VC III fund, according to a Business Wire release. The close brings the fund past its US$100 million target. The anchor commitment came from Széchenyi Funds, a Hungarian fund manager, which committed US$20 million and became Flashpoint's first institutional limited partner.
VC III focuses on global Series A technology startups, with a strategy centered on B2B software companies in Western markets. Flashpoint's co-founders emphasized founders originating from Emerging Europe and Israel. Alexander Konoplyasty, co-founder, General Partner and Managing Partner for VC III, said that roughly one-fifth of Western unicorns were founded by expats from Eastern Europe and Israel, and that such founders are more cost-efficient than the average U.S. startup, with significant pent-up demand for capital.
Michael Szalontay, co-founder and General Partner, said the firm reached its initial goal of over US$100 million in commitments despite a difficult fundraising environment, and noted the importance of the Hungarian institutional investor given a shared mission to develop the venture capital ecosystem in Hungary and the Carpathian Basin.
Széchenyi Funds, which manages over US$400 million and more than 80 portfolio companies, focuses primarily on financial institutions, large corporates and mature SMEs, while providing start-ups with support through domestic incubators, accelerators and fund-of-funds investments. Dénes Jobbágy, CEO and president of Széchenyi Funds, said Emerging European talent and professional investment form a highly efficient combination.
According to the release, Flashpoint manages about US$450 million in AUM across six funds, including four VC funds, a venture debt fund and a secondary fund. Its investors include more than 130 family offices and high-net-worth individuals, and the funds have invested in over 55 companies. Flashpoint has completed eleven exits, including its stakes in Shazam, sold to Apple, and Chess.com.
VC III focuses on global Series A technology startups, with a strategy centered on B2B software companies in Western markets. Flashpoint's co-founders emphasized founders originating from Emerging Europe and Israel. Alexander Konoplyasty, co-founder, General Partner and Managing Partner for VC III, said that roughly one-fifth of Western unicorns were founded by expats from Eastern Europe and Israel, and that such founders are more cost-efficient than the average U.S. startup, with significant pent-up demand for capital.
Michael Szalontay, co-founder and General Partner, said the firm reached its initial goal of over US$100 million in commitments despite a difficult fundraising environment, and noted the importance of the Hungarian institutional investor given a shared mission to develop the venture capital ecosystem in Hungary and the Carpathian Basin.
Széchenyi Funds, which manages over US$400 million and more than 80 portfolio companies, focuses primarily on financial institutions, large corporates and mature SMEs, while providing start-ups with support through domestic incubators, accelerators and fund-of-funds investments. Dénes Jobbágy, CEO and president of Széchenyi Funds, said Emerging European talent and professional investment form a highly efficient combination.
According to the release, Flashpoint manages about US$450 million in AUM across six funds, including four VC funds, a venture debt fund and a secondary fund. Its investors include more than 130 family offices and high-net-worth individuals, and the funds have invested in over 55 companies. Flashpoint has completed eleven exits, including its stakes in Shazam, sold to Apple, and Chess.com.
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