London-based Tapestry VC is today launching its €70 million ($80 million) Fund III to double its scale and deepen its focus on backing repeat founders across Europe and North America. At almost three times the size of the firm’s previous funds, Fund III is co-anchored by a €35 million ($40
David Cendon Garcia
London-based Tapestry VC is today launching its €70 million ($80 million) Fund III to double its scale and deepen its focus on backing repeat founders across Europe and North America.
At almost three times the size of the firm’s previous funds, Fund III is co-anchored by a €35 million ($40 million) commitment from new sovereign investor British Business Bank, alongside returning institutional co-anchors Railpen – a €40 billlion (£35 billion) pension plan – and Molten Ventures – a €1.1 billion (£1 billion) fund-of-fund. OpenAI’s CFO Sarah Friar is also joining the new fund.
Patrick Murphy, founder at Tapestry VC, says: “I’ve spent a decade investing on both sides of the Atlantic and the opportunity in Europe has never been clearer. There’s an entire generation of founders returning to build again with sharper instincts, deeper networks and who share our global-from-day-one ambition.”
Audrey Miller, Partner at Tapestry VC adds: “Today’s repeat founders represent a generation shaped by expensive experience. They’ve already navigated the realities of building, scaling and exiting technology companies and, second time around, they want partners who have felt the same pressures. This is what Tapestry VC brings.”
Founded in 2018, Tapestry VC is an early-stage venture capital firm focused on repeat founders both in Europe and North America. Companies in their portfolio include Nothing Technology, Ladder, Fin AI, Maze AI, Sunrise Robotics, Manna Air, Relay and Crossbeam.
It specialises in working with founders before there’s even a company or formal process in place, supporting product direction, hiring, fundraising and more.
The firm confidently believes in the impact Europe’s repeat founder flywheel has had on innovation, job creation and growth: European tech has minted 477 unicorns over the past eight years, of which 60% have been started by a repeat founder – as per data provided by the firm.
According to Dealroom, companies built by second and third-time European founders are today worth €1.9 trillion ($2.2 trillion) in combined enterprise value. These companies employ more than 2 million people across 23k companies and globally – up an astonishing 7x from just 300k employees in 2018 (see figure). Across the board, repeat founders in Europe outperform – raising 45% more capital compared to first-time teams, and 23% more than the baseline. Today, 75% of startups worth over €43 billion ($50 billion) globally were founded by serial entrepreneurs.
The launch of Fund III is also marking notable changes for the firm, including the opening of Tapestry VC’s flagship London office, and founder Patrick Murphy relocating from San Francisco to London after a decade of investing on both sides of the Atlantic.
Notably, all of the firm’s recent serial founder bets at Seed and pre-Seed in Europe have raised Series A rounds in the €100 millions or fielded acquisition offers, including Sunrise Robotics, Maze AI, Tracebit and Requesty AI, contributing to the fund’s 100% ‘graduation’ rate.
