Redalpine Raises $200 Million for Seventh Fund, Expands to London

European venture capital firm Redalpine raises $200 million in largest fund

(Reuters) - Zurich-based venture capital firm Redalpine said on Tuesday it has raised $200 million in its largest-ever fund, which would back 15-20 early-stage companies across Europe. Called Redalpine Capital VII or RAC VII, the fund saw commitments from several existing investors, with limited partners including institutional investors such as public pension funds and national banks. Redalpine, which also announced the opening of a new office in London, has more than $1 billion in assets under management across its seven funds. WHY IT'S IMPORTANT RAC VII has already invested in nine companies, including fusion energy startup Proxima Fusion, gene-editing company Expression Edits and LegalFly, an AI copilot for legal services. The fund underscores a rebound in venture capital funding following a lull earlier this year, aided by the optimism around artificial intelligence and other disruptive technologies. Redalpine's London office will help expand its geographical footprint, support its local portfolio companies and unlock new investment opportunities. The firm currently operates out of offices in Zurich and Berlin and has a presence in San Francisco. CONTEXT Founded in 2006, Redalpine has so far invested in more than 100 companies, including payments group Klarna, France's Mistral AI, Germany's tax return app Taxfix and biotech firm Infinite Roots. KEY QUOTES "We are at a pivotal inflection point in technological development ... Huge forces such as AI, energy transition, health and food security and more are creating significant investment opportunities. We are seeking startups that are working on incredible solutions," said Redalpine Founding Partner Michael Sidler. "London and the UK have shown very impressive advancements in the past few years, particularly in deeptech and AI -- areas that align perfectly with our investment strategy," said Sebastian Becker, general partner at Redalpine and head of the London office. (Reporting by Deborah Sophia in Bengaluru; Editing by Shilpi Majumdar)

Science-heavy Swiss VC firm Redalpine raises fresh $200M fund for early-stage investments

Many VC funds, especially recent vintages, have failed to return money to their investors. Swiss VC firm Redalpine is one exception, and this largely explains why its newly announced $200 million seventh early-stage fund was oversubscribed. Redalpine Capital VII, or RAC VII, is already well under way to back 15 to 20 European early-stage companies, with nine investments so far, including German nuclear startup Proxima Fusion. "We did a first close, and then we started to deploy the capital," founding partner Michael Sidler told TechCrunch. That capital will also help it open an office in London. Boasting consistent top quartile returns definitely helped Redalpine secure fresh funding. With over $1 billion in assets under management across its evergreen Summit Fund and its early-stage vehicles, the firm has built a large network of limited partners, enough of whom were willing to double down based on what they had seen. "We have recently calculated that over all of our seven funds, with very old and very young vintages, average net return over the last 10 years was 24% per annum," Sidler said. While some of these returns presumably come from being early backers of European fintech unicorns such as N26 and Taxfin, Redalpine's investment thesis is more on point with current trends. Together with partner Peter Niederhauser, a software entrepreneur, Sidler cofounded Redalpine in 2006 with a focus on Europe and what they describe as the "continuum of software and science." In today's parlance, you might call that European deep tech, and it's the subject of several recent funds from Elaia, First Momentum, or IQ Capital, to name just a few. Europe's university spinouts, in particular, make for coveted deal flow that can lure LPs. Sidler acknowledges the trend, while pointing out Redalpine's first-mover advantage. "Having these very dense networks with all of the universities and with the scientific community, and having all of these people with scientific backgrounds in physics, in medicine, in material science and biotechnology, that is a unique advantage for now, and to build it up takes a lot of time. These people who have experience as an entrepreneur, as an investor, and as a scientist, that's an extremely rare breed," he said. Like previous vintages, though, RAC VII remains sector-agnostic, as Redalpine sees the opportunity to innovate in a broad range of sectors, such as energy, health and food. This breadth has also helped provide a buffer against market volatility. According to Sidler, its wide scope is one reason why Redalpine still managed to exit portfolio companies "in more difficult markets like 2022-2023." As for 2024, "we managed to already harvest several exits from our still young fund VI and our Summit Fund," Sidler said. Sidler himself has a PhD in molecular biology, and he's no exception at Redalpine. "50% of our investment professionals [have] a scientific or engineering background," he said. This helps the firm "interact with scientific founders on eye level," but it also provides operational support. He gave the example of medtech startup Aktiia, which Redalpine general partner Daniel Graf is helping expand internationally after playing "a significant role in hiring their new CEO." Graf is based in Silicon Valley, but Redalpine also has offices in Berlin and Zurich, and its upcoming London office will make it easier for Redalpine to "interact with the ecosystem there," Sidler said. "We see more and more very interesting deal flow emerging out of the universities in and around London," he explained. University of Cambridge spinout ExpressionEdits is one example of the type of companies Redalpine is looking for in the U.K. Backed by RAC VII, it develops a computational gene editing platform that leverages AI to improve the effectiveness of therapies. "Humanity is currently at an inflection point in technological development, with AI and advancements in biotechnology driving this change," Sidler told TechCrunch.

redalpine closes largest fund to date, $200M RAC VII, and announces new London office

Zurich, Aug. 27, 2024 (GLOBE NEWSWIRE) -- Leading European venture capital firm redalpine today announced the final close of its largest-ever fund, redalpine capital VII (RAC VII), at $200M. Alongside this milestone, redalpine is expanding its footprint with a new office in London, enhancing its commitment to unlocking innovation across Europe. Founded in Zurich in 2006, redalpine has been investing for nearly two decades and is one of Europe's most experienced venture capital funds. redalpine is recognized for funding category leaders in software and science - from AI, software, biotech, and food to fintech, healthcare, and energy - and being the first backers of unicorns like Taxfix and N26. This strong track record, coupled with the fund's consistent top quartile returns, ensured that RAC VII closed oversubscribed, exceeding its initial target despite a challenging fundraising environment. Michael Sidler, Founding Partner of redalpine, said: "We are at a pivotal inflection point in technological development, with transformative change happening across all industries. Huge forces such as AI, energy transition, health and food security, and more are creating significant investment opportunities. We are seeking startups that are working on incredible solutions and are proud to be empowering the next generation of game-changing companies. With RAC VII, our largest fund to date, we can't wait to co-create the future together with visionary entrepreneurs, while continuing our legacy of delivering outstanding returns for our investors." redalpine founding partners: Michael Sidler and Peter Niederhauser A significant number of existing investors doubled down on their commitment in RAC VII, with limited partners including renowned family offices and leading institutional investors (including public pension funds, Funds of Funds, and national and international banks). Today, redalpine has over $1bn in assets under management across its seven funds. Operating out of offices in Zurich, Berlin, and soon London, and with a presence in Silicon Valley, RAC VII will back 15-20 early-stage companies from across Europe. The fund has already invested in nine companies, including Proxima Fusion (Germany), a Max Planck Institute for Plasma Physics spin-off focused on the future of clean energy production through fusion technology, LegalFly (Belgium), the AI copilot that is transforming legal workflows, and Expression Edits (UK), the gene-editing company that is streamlining and accelerating the development of life-saving therapies. Backing the "GameChangers": the redalpine team Lino Teuteberg, Co-Founder of redalpine portfolio company Taxfix, commented: "When we set out to help people all across Europe overcome their fear of complex tax and financial issues, redalpine stood out with their hands-on approach and deep belief in our vision. The founding partners and team served as valuable sparring partners around the topics of product development, growth, and hiring, and continue to double-down on their support by investing from Seed to Series D. We're delighted to hear that RAC VII will enable more entrepreneurs to benefit from partnering with redalpine." The opening of redalpine's new London office marks another significant step in the company's growth and commitment to Europe's local startup ecosystems. redalpine has already backed over 10 UK-based companies, including 9fin, Uncommon, and Hypervision Surgical. Sebastian Becker, General Partner at redalpine and head of the London office, said: "After expanding to Berlin, establishing a presence in London is the next logical step in our growth journey. London and the UK have shown very impressive advancements in the past few years, particularly in deeptech and AI - areas that align perfectly with our investment strategy at the continuum of software and science. I look forward to building our on-the-ground team and being on hand to further support our local portfolio companies." redalpine's investment team comprises seasoned operators, former entrepreneurs, and half of the team are scientists, including biologists, physicists, doctors, computer scientists, and material scientists. redalpine funds technological breakthroughs that offer tenfold improvements over existing solutions, providing a so-called 'tech hedge' and a key competitive advantage. To date, redalpine has invested in over 100 companies, including N26, Klarna, Taxfix, Mistral AI, Aktiia, Lakera, and Infinite Roots. In addition to its six early-stage funds, redalpine launched its innovative evergreen, multi-stage Summit Fund in 2020, the first of its kind in Europe. The Summit Fund enables redalpine to invest in European tech champions and support its top-performing portfolio companies through the later stages, from startup to IPO, reducing reliance on US funding. With the successful closing of RAC VII and the opening of the London office, redalpine is perfectly positioned to progress its vision of empowering game-changers, disrupting industries for good, and shaping a better world for all. ENDS Notes to the editor Media images can be found here. About redalpine redalpine is the pan-European venture capital firm that empowers GameChangers. Founded in Zurich in 2006, with offices in Berlin, London, and a presence in San Francisco, redalpine brings together financial investment, operational expertise, and a vast international network to help ambitious entrepreneurs transform their vision into a reality. redalpine has over $1bn in assets under management and has backed some of Europe's most disruptive software and science companies, including N26, Taxfix, Mistral, 9fin, Carvolution, Klarna, and Infinite Roots. With a multi-stage investment approach, redalpine invests Europe-wide and counts over 100 companies in its portfolio. Find out more at www.redalpine.com. For further information please contact the redalpine press office: Michelle Kuepper on [email protected] and +41 44 527 35 63. Additionally, Bilal Mahmood is available on [email protected] or +44 (0) 771 400 7257. Market News and Data brought to you by Benzinga APIs