Dublin based Frontline ventures Has released details of its new € 70 million ($ 83.8M) frontline seed fund III aimed at a European B2B startup. The new fund will bring Frontline’s total funds under management to € 250 million, which will be rolled out from its offices in London, Dublin and San Francisco. The fund’s backers include 10 tech angels from Europe and the US, the European Investment Fund (EIF), Ireland Strategic Investment Fund (ISIF) and Irish banking giant AIB, along with a large-scale post-exit entrepreneur.
The new fund has started investing in early stage companies, and aims to invest up to 45 companies over the next four years. The investment will range from € 250,000 to € 2.5 million. It follows Frontline’s recent new $ 70m US-based development-phase fund, Frontline X, which intends to expand into Europe and the EU territory for US startups, given that Ireland is a European Is a member of the Union, and is well placed to benefit from influence. Of Brexit.
Partner William McClinn said the fund would invest 50 percent of the fund into new early-stage companies. The remaining funds will be delayed for subsequent investments in existing portfolio companies.
It is McQuillan’s view that with Europe accounting for 26 percent of all global B2B software markets and the US at 50 to 55 percent, there are plenty of growth opportunities in Europe.
The new seed fund has been launched at a time when US VC firms are taking roots in Europe, such as Sequoia which opened an office in London last year, and more recently General Catalyst. In May of 2020, Frontline invested in Everwelt, an Irish HQDL company with Clarence Perkins, Index and Sequoia.
Seventy percent of Frontline’s seed portfolio companies have raised capital from US VC since 2012, and Frontline partners have experience with companies such as Google, Twitter, SurveyMonkey, Airtable and Yammer.
McQuillan said in a statement, “When we looked at the data back in 2012 – at the beginning of Frontline – it was clearly evident that European entrepreneurs lacked the infrastructure and support to build global businesses outside of Europe. Today, Europe finds itself right on the targeted list of top-tier US investors, but global expansion remains a significant challenge to resolve. As a team, we have accumulated all of our experience and resources to help our founders cross the Atlantic. Seed Fund III will be an extension of our work – to help founders get on the ground – and globally.
Frontline’s more notable investments include Linked Finance, Clearbank, and Mudrafair. Frontline X Growth Fund has invested in Series B of tripactions; People.ai’s $ 100 million series; And Clearbank’s $ 50 million Series B.
Notable exits include Logantries, which was acquired by Rapid 7; Orchestra, acquired by CenturyLink; And pointy acquired by Google in 2020.