Heartcore Capital bets on Europe with $ 200 million fund for consumer tech startups
Heartcore Capital, one of the few VCs to focus on consumer tech, has raised a $ 200 million seed fund for such startups across Europe. Heartcore IV, the company’s flagship investment vehicle, will be backed by Heartcore Progression Beta, a $ 50 million “opportunity fund” designed to follow cycles in consumer technology.
The company said both vehicles were oversubscribed. Investors in the funds include Hermann Haraldsson (Boozt), Andrew Stalbow (Seriously), Phillip Chambers and Kasper Hulthin (Peakon), Paul Crusius and Marco Vietor (Audibene), Morten Strunge (Podimo, Mofibo) and Max-Josef Meier (Finn ).
Most European VC technology should be B2B / SaaS focused, but Heartcore has specialized in consumer VC technology.
In Heartcore’s favor, there are 500 million consumers in the EU spending $ 11 trillion a year, which is comparable to the US consumer market. It also has a larger middle class. And while B2B platforms generally need to reach or at least originate in the United States, the B2C market tends to be more local.
The pandemic has also acted as an accelerator for consumer technology, forcing populations to adopt digital services such as online grocery shopping[ulationstotakeupdigitalservicessuchasonlinegroceries[ulationstotakeupdigitalservicessuchasonlinegroceries
Heartcore has a 14-year history in consumer technology with its portfolio raising nearly $ 1 billion in follow-up funding in the past 12 months, the company said.
Swedish consumer personal finance manager Tink’s recently sold Visa for $ 2.2 billion, and Heartcore was the largest venture capitalist at the time of the acquisition.
It has also invested in virtual restaurants (Taster), open banks (Tink), quick-commerce (Weezy), fashion e-commerce (Boozt), cellular agriculture (Gourmey), digital health (Kaia Health, Natural Cycles) or subscription commerce. (The Forks, Italics).
Max Niederhofer, Partner of Heartcore Capital, told me: “Europe has always been great when it comes to consumer technology. You had Skype, Last fm, Spotify, and Supercell. They are all consumer companies. I think what’s happening is that a lot of consumer champions are national champions. Lando is huge in Germany. The largest insurance technology company in France is actually a French company. So, as technology disrupts all categories of consumer spending, there are a lot of great companies being built in Europe that are mostly national or regional, and this is where we think there is a lot of room to play.