In a resounding vote of confidence for the European tech scene, Emblem, a burgeoning venture capital firm headquartered in Paris, has announced the final closing of its inaugural fund, securing a total of €80 million (approximately $85 million). This milestone comes just eighteen months after its initial closing, showcasing the firm's ability to attract significant investment even amidst a turbulent funding landscape.

 

Navigating the Funding Drought

Emblem's achievement is particularly noteworthy given the current state of venture funding. Atomico's recent "State of European Tech" report paints a sobering picture, revealing a third consecutive year of declining venture funding in 2024. This downturn is largely attributed to a sluggish exit environment, with fewer acquisitions and Initial Public Offerings (IPOs) making VC investments less appealing. Many VC firms are struggling to secure funding for follow-on funds, despite the hype surrounding Artificial Intelligence and its potential investment opportunities. However, Emblem has bucked this trend, reaching its hard cap, which is the maximum amount the company targeted to raise.

 

The Duo Behind Emblem

Emblem was founded by the dynamic duo of Béénédicte de Raphélis Soissan and Guillaume Durao. Before establishing Emblem, they had already made astute investments as angel investors in companies like Sorare, Dalma, and Gourmey.

 

With Emblem, de Raphélis Soissan and Durao aim to build a seed investment firm that will make between 25 to 30 investments. They plan to lead or co-lead seed rounds with investments ranging from €500,000 to €3 million. However, the firm is open to participating alongside other lead investors when compelling opportunities arise.

 

A Diverse Portfolio in the Making

Since its initial closing in March 2023, Emblem has already invested in 16 startups, including:

• Pivot: A procurement tool challenging established players like Coupa.
• The Mobile-First Company: A B2B mobile app studio.
• Altrove: A new materials company leveraging AI and lab automation to accelerate research.
• Volta: An online commerce platform focused on B2B transactions, similar to Shopify.

Emblem's portfolio reflects a commitment to diversity, spanning various sectors and geographies. Eight of their investments are in French companies, six in the Nordics (Denmark and Sweden), one in the United States, and one in Italy.

 

Backing from Key Players

Emblem's fund has attracted over 200 limited partners (LPs), including family offices and prominent tech entrepreneurs. Notably, founders from companies like Unity, Pleo, Qonto, 3Shape, Spendesk, Voodoo, PennyLane, JobandTalent, Ledger, and Zendesk have invested in the fund, constituting over half of the total capital raised.

 

The remaining funds have come from various funds of funds, as well as commitments from EIFO, the Danish sovereign fund, and Bpifrance, the French sovereign fund.

 

Eyes on the Future

Looking ahead, Emblem is already considering its next fund, which is expected to be approximately the same size as its first. The firm anticipates launching its next fundraising effort in about a year.