Partech launches its successor €360M Venture fund

Partech launches its successor €360M venture fund to back mission-critical software, data and fintech specialists in Europe and announces its first investment in Smartpricing

In the bustling heart of Paris, on a crisp winter day, December 14th, 2023, Partech unveiled its latest enterprise, the Partech Venture fund. This new €360 million venture, a successor to the celebrated Partech International Ventures VII, is laser-focused on discovering and nurturing pivotal software companies propelling digital transformation across Enterprises and Small and Medium Businesses (SMBs).

Helming this ambitious venture are Philippe Collombel and Reza Malekzadeh, bolstered by a cadre of seasoned international professionals such as Jean Sini, Simone Riva, and Elena Moneta.

This team, an amalgamation of seasoned operators and investors, brings a multifaceted skill set, blending technological prowess with international business acumen. Their strategy is to leverage their collective experience in Product Development, Business Growth, Market Entry Strategies, Mergers and acquisitions, Executive Recruitment, and Capital Formation to elevate the companies in this new fund’s portfolio.

We are continuing to build on the success of our previous venture, with experienced partners that have built a portfolio of leading European companies and we have added some new talent to increase our coverage of the best European deals.

comments Philippe Collombel, General Partner and co-founder of Partech.

Partech Venture casts its net across four critical areas: Application Software, Deep Tech Software (encompassing Data & AI Infrastructure, Cybersecurity, DevOps), B2B & B2B2C Vertical Platforms, and Fintech & Insurtech Applications.

The fund’s philosophy and aspirations remain steadfast, focusing on leading investments in 22 to 24 European companies in their Series A or Series B stages, each boasting €1 to €10M in recurring revenue.

We are essentially keeping the same investment strategy for our venture fund: we will seek to support promising category leaders that are striving for either European dominance or the potential to expand to the US.

We have only scratched the surface of the huge market potential arising from the digital transformation of European enterprises and SMBs. European capabilities in creating mission-critical applications for productivity, digital infrastructure, data protection and cyber security, as well as tools that leverage data and AI, have dramatically improved over the last 10 years.

comments Reza Malekzadeh, General Partner.

Partech Venture is the successor fund of PIV VII. With its venture strategy, Partech has backed global category leaders, including:

• ABTasty (AI-driven customer experience optimization platform),
• Agicap (Cash-flow monitoring & forecasting platform),
• Akeneo (Product Information Management & Product Data Intelligence software),
• Bitrise (Mobile DevOps Software platform),
• Compte Nickel – acquired by BNP Paribas – (The first Phygital Neobank),
• Fresha (Vertical ERP for the beauty industry),
• Guardicore – acquired by Akamai – (Micro-segmentation and workload protection solutions for datacenters),
• Kantox – acquired by BNP Paribas – (FX risk management automation software),
• ManoMano (B2C and B2B vertical DIY marketplace),
• Medigate – acquired by Claroty – (Cybersecurity platform for medical devices),
• Memfault (IoT reliability platform),
• Odaseva (Data governance & security platform),
• Papernest (Smart solution to manage contracts and subscriptions),
• Platform.sh (Global DevOps infrastructure platform),
• Shippeo (Supply-chain real-time visibility platform).

Partech Venture’s investor pool is a tapestry of international institutions, sovereign funds, and leading multinational corporations, including prominent names like Allianz France, BNP Paribas, Bpifrance, CDP Venture Capital, Edenred, FDJ Ventures, JCDHolding, and Lombard Odier Investment Managers.

We are thrilled by the robust backing received by Partech Venture, a testament to the success of our prior fund, the effectiveness of our investment strategy, and the dedication of our team.

Already, half of the fund, €180M, has been committed, drawing support from a diverse range of investors.

adds Philippe Collombel.

Partech Venture First investment in SmartPricing

The fund’s inaugural investment exemplifies its strategic direction. Smartpricing, an Italian innovator in hotel revenue management software, is the recipient of Partech Venture’s first €13M Series A round.

Founded in 2020 in Arco, Trentino, Smartpricing has revolutionized the hotel industry with its machine learning-based technologies, enabling hoteliers to optimize revenue through sophisticated algorithms that analyze market trends, geographic pricing patterns, and historical data.

In a mere three years, Smartpricing has facilitated over 2 million bookings for more than 3,000 hotels and other travel accommodations, boosting their revenue by an impressive 30% on average. With ambitions to dominate the European market, particularly in Italy and the DACH region, Smartpricing is gearing up to be a global frontrunner in revenue management for the hospitality sector.

This funding will fuel its expansion and product development and fortify its position in the software and fintech arena for hospitality.

The Partech Venture team

The Partech Venture team, a mosaic of software and industry experts based in Paris, New York, Milan, and London, is poised to redefine the landscape of digital transformation through strategic investments and unwavering support for their portfolio companies. With their profound expertise and visionary approach, Partech Venture stands at the forefront of fostering technological innovation and driving the digital evolution of businesses globally.

The team includes:

• Philippe Collombel (Founding and General Partner): he recently invested in Agicap, Fresha, Kantox, ManoMano, Compte Nickel, Papernest, Perfectsay, Shippeo, and SideCare.
• Reza Malekzadeh (General Partner): he invested in AB Tasty, Akeneo, Bitrise, Elopage, Guardicore, Odaseva, and Platform.sh.
• Jean Sini (General Partner): he invested in Medigate, Memfault, and, before Partech, in Canva, Datakin, Fieldwire, and Treasure Data.
• Simone Riva (Senior Principal): he invested in Koro and, before Partech, in Contentsquare, Deliveroo, Flixbus, GetYourGuide, Sennder, Sumup, Wefox and Bending Spoons.
• Elena Moneta (Principal): she has invested in Roger and, before Partech, in PrimaryBird, Peppy, and Semble.
• Nikhil Punwaney (Associate): he recently joined in Q3 2023. Nikhil, the former CTO of DeepBench, brings deep expertise in Deep Tech, DevOps, Cybersecurity, and software engineering, with a background at LinkedIn and Acquia.

Since the end of 2021, Partech has realized 11 exits generating at least a 3x multiple on invested capital, including 6 from the venture portfolio, with 5 exits above 5x.