French VC company Partech has closed another seed fund dedicated to early-stage tech startups – the fund is called Partech Entrepreneur IV. This time, Partech raised 120 million euros. It represents $124 million at the current exchange rate.
In 2020, Partech raised $100 million for Partech Entrepreneur III. At the end of 2016, Partech raised $107 million for its previous seed fund. So Partech will have a little more money to invest in early stage startups, but it won’t be a huge difference.
With today’s new fund, the company plans to invest between €300,000 and €3 million. For many startups, this will be their first VC investment, in the seed stage and sometimes even pre-seed stage. Partech can lead or co-invest in the round.
When it comes to follow-up rounds, a VC firm choosing to reinvest in a portfolio company used to be an exception. It has become the norm for many VC funds. And Partech follows this trend as it says it can reinvest until the Series B round.
But Partech Entrepreneur IV remains a dedicated seed capital fund because Partech believes that seed capital investments require a dedicated team with some specific skills. “Supporting and collaborating with exceptional founders from the very beginning of their journey is the shared passion – and single focus – of our team. It is, in our experience, a unique profession, requiring stage-specific expertise, dedication and mindset,” General Partner Boris Golden said in a statement.
In terms of verticals and geographies, Partech has no specific industry, market or model in mind. It is an opportunistic seed fund with a focus on Europe, with some investments in the US and South East Asia.
“We believe that identifying the future leaders of new emerging categories often requires a broad scope and a genuine openness to what the most talented founders come up with,” General Partner Romain Lavault said in a statement.
While Partech doesn’t list all of the limited partners in its new startup fund, the company says 150 entrepreneurs (current or former) have contributed to the new fund. There are also other financiers, such as financial institutions, multinationals and family offices.