The European venture capital industry has grown exponentially in the last decade. Far from curbing its activity, the current crisis resulting from the pandemic has given rise to the emergence of several investment funds focused on highly innovative projects in their very early stages.
Enzo Ventures, younger brother to PROfounders Capital, launched publicly in mid-October 2020 and in only 4 months, closed its first fund – which was overfunded by 125%. They’ve also made their first investment in Balio, the fast-growing Spanish Fintech for millennials looking to grow their finances.
Enzo Ventures opens its doors in Barcelona, with a first-class team and a drive to discover the unicorns of the future. Enzo is led by Edgar Vicente, Iván Fernández and Markus Törstedt, three under 24-year-old entrepreneurs with previous experience in successfully launching and exiting their own startups. The first two were founders of DiHola, sold to an international software group in early 2020. In turn, Markus is the driving force behind the consumption of digitalization SaaS, Luna also divested in late 2020.
It was precisely this previous experience as founders that led Edgar, Ivan and Markus to the conviction that there was a considerable opportunity to seize in the early stage investment space. It’s in this spirit that Enzo Ventures was born, an innovative and ambitious project that the three entrepreneurs embarked on together with PROfounders Capital, and aims to become one of the leading venture capital funds for pre-seed startups in Europe.
Their older brother, PROfounders Capital, has so far invested in 57 companies in their Series A rounds. Among their 14 exits, their investment in Unity – the world leading cross-platform game engine – made the firm a 100x return on the investment by supporting the company in its early venture stages until they rang the bell on the NYSE in 2020.
PROfounders has covered private equity support from pre-Series A stages to buy-out operations through one of their Limited Partners, Oakley Capital. Given the institutional investor has recently been covering the very early stages of their investments combined with the fact the Southern European market has developed remarkably during the past decade, Sean and Rogan decided to support Enzo and its ambitious vision.
Enzo Ventures operates as a micro-fund, with the initial support of experienced investors and entrepreneurs. It specializes in young entrepreneurs in the earliest stages of their ventures. Enzo will be investing in this crucial stage accompanying the teams with capital, network and go-to-market support, with the aim of making their portfolio companies highly attractive for larger venture capital funds.
Among other novelties, Enzo will consider the possibility of early exits from some of its portfolio companies, for which they have signed deal-flow exchange agreements and secondary disinvestment proposals with various international funds. More than a dozen top-tier European funds have already shown interest in these options.
The “under30” age range where the lion’s share of tech-founders tends to launch their ventures is the area Enzo plans to dedicate most of its liquid resources. It has support from a global network of experts from different countries and profiles, most of them also young entrepreneurs with expertise in the challenges associated with entrepreneurship. These experts will also help identify and promote the best startups for Enzo, both in Spain and in other European markets.
While planning the structure of their second fund, Enzo looks forward to deploying its assets during 2021 and 2022 across Europe by investing in 20-25 companies in the pre-seed stage. Enzo Ventures is inspired by funds such as Dorm Room Fund, which is generally the first institutional investor in its portfolio companies. Enzo’s greater generational proximity to the entrepreneurs of their portfolio companies is one of the premises on which it has built a funnel of high-quality opportunities.