Heartcore Capital Broadens Investment Focus with $180M Fund V
Heartcore Capital has announced its latest fund, Fund V, totaling $180 million (€170M). This marks a shift from their previous consumer technology focus in 2021 towards a more generalist approach.
The 17-year-old firm will continue its early-stage investment strategy, aiming to be the first institutional investor in startups. Their portfolio includes companies like Boozt, Neo4j, Peakon, Tink, GetYourGuide, TravelPerk, and Podimo. Heartcore Capital is ranked 9th best VC globally by HEC Paris-Dow Jones.
New Investment Areas
Fund V expands beyond consumer tech to encompass several key areas:
- Compute stack
- Synthetic biology
- Productivity/AI
- Software infrastructure
- Travel
- Climate tech
Initial investments include LLM compute infrastructure, database software, software for carbon capture, and consumer travel. This broader focus reflects a response to evolving technological trends. For insights into AI's impact, see OpenAI's advancements in reasoning and potential for deception.
Fund Details and Future Outlook
Fund V includes repeat investor Industriens Pension and aims for 25-30 early-stage investments. Heartcore Capital also manages a smaller, dedicated Web3 fund. They have achieved a 1.6x return on investment over the past eight years. Zopa's recent funding round highlights the current investment landscape.
The firm anticipates a warming EU market in the coming year, with increased M&A activity and potential IPOs. They question whether European companies will continue to favor US IPOs. With offices in Copenhagen, Stockholm, Berlin, and Paris, Heartcore Capital now manages €800 million in committed capital. Neo4j CEO Emil Eifrem praises Heartcore's long-term support, from their initial investment 15 years ago to Neo4j's current multi-billion-dollar valuation. For more on software infrastructure, explore GitLab's leadership update.