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Luxembourg firm launches fund to support European startups
Economics

Luxembourg firm launches fund to support European startups

19.07.2017 From our online archive
Mangrove Capital Partners has previously backed companies such as the well-known telecommunications player Skype, web development platform Wix.com, e-commerce company Brands4Friends and Indian messaging platform Nimbuzz.

Luxembourg-based venture capital firm Mangrove Capital Partners has raised a $170 million fund to invest in European and Israeli startups. To be launched at the end of the third quarter or beginning of Q4, the fund is expected to grow and reach an amount within the range of $222 million.

Launching its fifth fund since its founding in 2000, the company raised the amount in two months, with 90 per cent of the money coming from institutional investors and the remaining coming from family-offices. 

Without disclosing any names, co-founder and managing partner Hans-Jürgen Schmitz told Luxemburger Wort that half of the fund investors are located in the US, 40 per cent in Europe and 10 per cent in Asia.

"Keep funds smaller and focus on early stage companies. This is part of our company philosophy", he said. And the fund should be seen as a "logical continuation" that will focus on a variety of sectors, including fashion and recruitment.

While Mangrove Capital Partners has a general investment approach across different industries that are impacted by disruptive technologies, according to Schmitz, in the future the company might consider focusing more on the fintech sector.

Luxembourg's growing startup scene

When asked about startups in Luxembourg, Schmitz said that Mangrove has not only been observing the local startup scene very carefully but also invested in local companies such as as online recruitment agency JobToday. He also outlined the amount of research being done in Luxembourg and the various incubators available for local entrepreneurs.

Mangrove has previously backed companies such as the well-known telecommunications player Skype, web development platform Wix.com, e-commerce company Brands4Friends and Indian messaging platform Nimbuzz. 

With a presence in Berlin and Tel Aviv, Mangrove Capital Partners is headquarted in Luxembourg where it employs 10 people. The ventural capital firm is currently investing in a number of companies valued above $100 million including Russian online fashion retailer KupiVip, Israeli web-based services Walkme, British manufacturer of electric taxicabs MetroCab or Freedompop, US wireless Internet and mobile virtual network operator.

(Roxana Mironescu, roxana.mironescu@wort.lu, +352 49 93 748)