Tapestry VC Raises $80 Million for Third European Fund

Tapestry VC, a London-headquartered venture capital firm, has successfully closed its third fund, securing $80 million. The fund will concentrate on investing in European entrepreneurs who are launching their second or subsequent companies.

The firm's strategy centers on the belief that experienced founders, having previously navigated the startup landscape, offer significant value. Tapestry VC highlights that repeat entrepreneurs in Europe have generated over $2 trillion in enterprise value, and anticipates that the current wave of AI innovation will foster another generation of seasoned founders.

"There’s beginning to be this super cycle of repeat founders in Europe," said Patrick Murphy, co-founder and managing partner at Tapestry VC. Murphy, who recently relocated his base back to London, also noted the firm's establishment of a new flagship office in the city. He emphasized that repeat founders bring valuable experience, established networks, and the ability to quickly assemble teams.

With this new fund, Tapestry VC plans to maintain a similar investment pace as previous funds, targeting approximately 30 companies at the pre-seed or seed stage. The average investment size from this fund is expected to range from $1 million to $3 million, an increase from the roughly $1 million checks issued in prior funds. The firm actively engages with potential founders, offering support and ideation even before a new company is formally established.

Notable past investments by Tapestry VC include smartphone and earbud maker Nothing and AI customer service platform Fin AI, which was acquired by Salesforce for $3.6 billion. The firm has also invested in companies like Manna Air Delivery and Sunrise Robotics, and is increasing its focus on AI security with stakes in Tracebit, Maze, and Keycard. New investors in the third fund include the British Business Bank, Railpen, and Molten Ventures, with Sarah Friar, CFO at OpenAI, also participating.