The Frontline Ventures Seed Fund III will target European founders in the B2B space.
Frontline Ventures, which backs a number of fintech firms including alternative lender Linked Finance, has launched a new €70m fund.
Aside from Linked Finance, Frontline has also backed a number of fintech businesses including Clearbanc and Currencyfair.
The new fund includes investment from the European Investment Fund, the Ireland Strategic Investment Fund and Irish banking giant AIB. All have backed prior Frontline funds. It also includes ten exited software entrepreneurs from across Europe and the US, the firm says.
Founded in 2012, the new fund brings the firm’s total assets under management to €250m.Its other previous seed investments include Logentries (acquired by Rapid7), Orchestrate (acquired by CenturyLink), and Pointy, acquired by Google in 2020.
William McQuillan, partner at Frontline Ventures, says interest in European start-ups is rising from the US but that ambitions for global expansion of these start-ups is still nascent.
“When we looked at the data back in 2012 - at the very start of Frontline - it was painfully clear that European entrepreneurs lacked the infrastructure and support to build a global business out of Europe.”
“Today, Europe rightfully finds itself on top-tier US investors’ target list, but global expansion remains an important challenge to solve. As a team, we've pooled all of our experience and resources into helping our founders cross the Atlantic. Seed Fund III will be an extension of our work - to help founders get off the ground - and go global.”
A number of well-known US venture capital firms have in recent years expanded their operations in Europe including Sequoia which opened an office in London last year.
"The US accounts for 52 per cent of the global software market, and Europe accounts for a further 26 per cent. To become the global category winner companies of all stages need to compete and win, in both. Our job is to facilitate their growth by adding more than capital alone,” McQuillan said.