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A new wave of VC Solo GP is coming to Europe and Hypernova hopes to propel it forward • TechCrunch


The United States has had solo venture capital fund managers for many years, but the trend is only beginning to be felt in Europe. One of the newest is Underline Ventures, launched this year by Bogdan Iordache in Romania. His career trajectory to solo GP status fits the profile: a former entrepreneur, a key player in the Eastern European tech scene, a founder of the How to Web conference, and a former VC on a partner team. multiple.

Above all, what Europe needs most are these “funds of funds” specializing in working with this new wave of European solo GPs.

Hypernova, a $25 million fund that soft-launched in June, was founded by veteran investor Tugce Ergul. She plans to invest not only in other funds, but also directly in startups. Ergul was previously at Angel Labs, an “investor accelerator”, which spanned 44 countries.

Speaking to TechCrunch, Ergel said, “There is a new wave of funds coming. We’re talking about successful founders who are now creating their own funds to invest in new entrepreneurs. Some partners are leaving their old funds to create their own fund because it is now easier and cheaper than ever to create a fund. And there is more support for lone capitalists.

So how does it work? Hypernova invests 40% of its fund in Solo GP funds, and the rest directly in startups, including 50% in the United States and 50% in Europe.

Ticket sizes will be $500,000-750,000 for those solo GPs raising their first fundraiser, and Hypernova will be targeting not just financiers, but potentially journalists, angel investors, former entrepreneurs, or associates/partners from their backgrounds. previous venture capital fund.

Hypernova offers new support for general practitioners on the side of fund management, necessary technology, LP introductions, brand support and co-investment opportunities

Ergel added that in the past, no LP would give Solo VCs money: “Now there’s a new world out there, you can find LP money if you’re just a person and a solo GP Seed funds have gotten cheaper You can start a fund for $10,000 and your fund administration fees are really low so it’s just to make access much easier for those fund managers. So we want to support those fund managers. That’s when the hybrid game comes in because the other half of the fund is a direct investment vehicle. And we’re either going to co-invest with those funds in which we invest, or we will invest in subsequent rounds in the winners of these fund managers.

For its direct investments, Hypernova plans to focus on automation, retail, finance, logistics, transportation and shipping, with tickets ranging from $250,000 to $500,000, and it won’t take any seats on the board of directors.

Hypernova claims to be the first female-led solo GP fund in Europe and the first female-led solo GP fund of funds in the United States

Since its soft launch in June, Hypernova claims to have:

– Investment in a San Francisco-based early-stage infrastructure fund
– A London-based fund that manages athletes’ money
– A solo GP fund based in Berlin
– Los Angeles-based deeptech fund
– San Francisco-based fund investing in secondary LPs (Fund II).
– Invested directly in a San Francisco-based hydrogen market
– DevOps for Berlin-based carbon removal companies
– London-based cohort-based learning and talent platform called Neol
– a Micro-fulfillment platform to optimize the last mile

It now plans to open an office in London and hire a London-based partner from January 2023.

And he’s launching an LP diversity and inclusion program to bring new investors into the investment fund game where they could co-invest with very small amounts.

“I’m a solo venture capitalist myself,” Ergel added. And it is also one of the novelties for the markets. I started this because I encountered so many difficulties and problems myself as a solo GP. If I had started this in the United States as a US-only US-focused fund, I would have closed it in six months. But because I wanted to do something that connects the United States and Europe, it took a lot longer.

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