Emblem, a relatively new European venture capital firm based in Paris, has successfully secured €80 million for its first fund, marking a significant milestone in the current funding environment. The final closing, which comes 18 months after the first closing, is a testament to the firm's resilience and determination in a market where venture funding has been declining for the third consecutive year, according to Atomico's latest State of European Tech report.

The decline in venture funding can be attributed to the lack of acquisitions and IPOs, making venture capital as an investment category less attractive. This has led to several VC firms struggling to raise follow-on funds, despite the current artificial intelligence boom, which presents a huge investment opportunity. However, Emblem's achievement demonstrates that it is possible to defy the odds and secure significant funding.

Founded by Bénédicté de Rapheélis Soissan and Guillaume Durao, Emblem's team has already made some notable investments as business angels before creating the firm. Their portfolio includes investments in crypto trading card game Sorare, pet insurance startup Dalma, and cultivated meat company Gourmey, among others. With the establishment of Emblem, the duo aims to make 25 to 30 investments with its initial fund, focusing on seed investments with tickets ranging from €500,000 to €3 million.

Since its first closing in March 2023, Emblem has already invested in 16 startups, showcasing its diverse portfolio in terms of area of focus and geographical focus. The firm's investments include Pivot, a procurement tool and Coupa competitor; The Mobile-First Company, a B2B mobile app studio; Altrove, a new materials company using AI and lab automation; and Volta, an online commerce platform focused exclusively on B2B transactions. De Raphélis Soissan highlighted that eight of these investments are in France, six in the Nordics, one in the U.S., and one in Italy.

Emblem's core focus remains on France and the Nordic tech ecosystem, with over 200 limited partners investing in the first fund, including family offices and tech entrepreneurs, such as the founders of Unity, Pleo, Qonto, 3shape, Spendesk, Voodoo, Pennylane, JobandTalent, Ledger, and Zendesk. These investors make up more than half of the total amount raised. The remaining funds were secured from several funds of funds, as well as commitments from both EIFO (the Danish sovereign fund) and Bpifrance (the French sovereign fund).

Looking ahead, Emblem is already planning its next fund, which is expected to be roughly the same size as this one. De Raphélis Soissan emphasized that the firm will take time to savor its current achievement but will need to start raising again in about a year's time, given that it takes around four years to deploy the fund. This forward-thinking approach demonstrates Emblem's commitment to supporting innovative startups and driving growth in the European tech ecosystem.

In conclusion, Emblem's successful fundraising is a significant achievement in the current venture capital landscape. The firm's ability to secure €80 million despite the challenging environment is a testament to its strong network, investment strategy, and commitment to supporting European startups. As the firm looks to deploy its fund and plan its next move, it is clear that Emblem is poised to play a significant role in shaping the future of European tech.