Berlin-based venture capital firm Fly Ventures has launched its third fund, securing €80 million to invest in seed-stage European startups operating in the enterprise and deep tech sectors. This marks a significant increase from its previous €53 million fund raised in 2020, demonstrating the firm's growing presence in the European startup ecosystem.

Fly Ventures' Fund III was reportedly oversubscribed and raised in a single closing, a testament to the firm's reputation and investment strategy. According to Gabriel Matuschka, co-founder of Fly Ventures, the firm's goal is to invest in startups two to three years before others take notice. This approach has allowed Fly Ventures to establish itself as a boutique firm with a unique focus on technical founders and deep tech investments.

Fly Ventures typically invests €1-4 million in rounds of €2-10 million at the inception stage, targeting startups with high growth potential. The firm's investment portfolio is diversified across various sectors, with AI accounting for approximately 45% of its investments, followed by vertical applications and industrial tech (35%), and dev tools/infrastructure (20%).

The firm's equal-GP model is operated by four partners, each based in a different location: Berlin, London, Paris, and Zurich. This setup enables Fly Ventures to effectively cover key European markets, including Germany, the UK, and France. Matuschka highlighted the importance of having a presence in Munich, which is a hub for technical talent, and Paris, which has accelerated its technical capabilities in recent years.

Fly Ventures' portfolio boasts an impressive list of startups, including clinical trials marketplace Inato, anti-money-laundering startup Salv, cybersecurity startup GitGuardian, and autonomous driving startup Wayve, which recently raised $1.05 billion in a Series C round led by SoftBank. Other notable investments include Lakera, a Zurich-based startup protecting enterprises from LLM vulnerabilities, and Orbital Materials, a UK-based company developing foundation models for materials science.

The launch of Fund III is expected to have a significant impact on the European startup ecosystem, providing much-needed capital to innovative startups in the enterprise and deep tech sectors. With its focus on technical founders and boutique firm operations, Fly Ventures is well-positioned to continue identifying and supporting high-growth startups that will shape the future of European technology.

As the European startup ecosystem continues to evolve, Fly Ventures' Fund III is a timely injection of capital that will help fuel innovation and entrepreneurship in the region. With its unique investment approach and strong track record, Fly Ventures is set to play a significant role in shaping the future of European technology.