Global Founders Capital, a Berlin-based early-stage VC firm closely associated with the German startup factory Rocket Internet, is set to become Rocket Internet’s venture arm.
Previously, the VC successfully raised two $1 billion funds and actively participated in numerous deals per year. However, activity decreased in recent years, leading to a significant strategic shift. Going forward, the firm will exclusively invest from Rocket Internet’s balance sheet.
A report by the Financial Times last year highlighted the firm’s transition. Recently, Global Founders Capital confirmed this shift and explained the rationale behind it.
Partner David Sainteff acknowledged the changes within the firm, revealing that the decision not to raise another fund stemmed from a lack of attractive investment opportunities that align with their criteria. With €300 million at their disposal, they believe they can remain competitive without the need for additional capital.
Initially structured as a traditional VC firm with multiple limited partners, Global Founders Capital achieved success with investments in companies like Personio, Revolut, and SumUp. Following the decision to forgo raising another fund, the firm will now operate with Rocket Internet’s capital to make venture investments.
With a focus on early-stage investments and the ability for follow-on funding in subsequent rounds, the firm has streamlined its operations, retaining only five partners, including Oliver Samwer, Rocket Internet’s co-founder.
While the decision not to pursue a third fund may be influenced by limited partner support and market conditions, Sainteff emphasized that they are open to fundraising when conditions are favorable.
The pivot marks a significant shift for Global Founders Capital, consolidating its focus on early-stage investments and scaling back its previous expansion into various geographies and tech sectors.
