Endeit Capital Secures €250 Million for European B-Stage Startups

Endeit Capital, a Dutch-German growth capital firm, has successfully raised a €250 million fund dedicated to investments in European startups at the B-stage. This represents the firm’s third and most substantial investment vehicle, designated Endeit Capital III.

Focus on Digital Transformation

The firm’s stated objective is to provide support to European scale-up companies that are instrumental in driving a faster digital transformation of both the European society and economy, ultimately enhancing Europe’s overall digital capabilities.

A Long-Standing Investor

Established in 2006, Endeit has a considerable track record as an early European investor, having already backed 35 companies. Prior to this latest fund, the firm had deployed €250 million across its initial two funds, concentrating on the Benelux, DACH, and Nordic regions.

Notable Portfolio Companies

Endeit’s investment portfolio includes a diverse range of companies, such as 3D Hubs, Roamler, Albelli, and MetrixLab. Other past investments encompass Unamic, Eyeworks, Gastrofix, Comtravo, Contorion, Chronext, Tourradar, Smartclip, Nordics Blis, Unruly, and Leadfeeder.

Many companies within Endeit’s portfolio have achieved successful exits, being acquired by prominent organizations like Time Warner, Xerox, Newscorp, Protolabs, Lightspeed, Macromill, TMG, and Cimpress. Recently, Bux, a European neo-broker in which Endeit invested, secured $80 million in funding.

Growth in the European VC Landscape

This announcement aligns with a broader trend of new venture capital and growth funds emerging across Europe, including recent initiatives from Cusp Capital and Highland Europe.

Addressing a Capital Gap

The availability of this new fund is particularly beneficial for European companies in their later stages of development. While early-stage funding has been readily accessible, securing late-stage capital has historically been more challenging within the European market.

Partner Perspectives

Hubert Deitmers, founder and managing partner, commented on the successful fundraising: “The closing of Fund III was a significant achievement, accomplished within a short timeframe and despite the challenges posed by the pandemic.”

He further emphasized the firm’s commitment to bolstering European competitiveness: “We are dedicated to supporting internet entrepreneurs who can drive change, making Europe more competitive and aspiring to become global leaders.”

Leveraging Emerging Technologies

Deitmers highlighted the importance of core technologies like machine learning, AI, and quantum computing for the next generation of European internet companies. Endeit aims to foster the development of this expertise within Europe, ensuring that companies innovating in these fields thrive within their home markets.

Origins in Endemol

Endeit Capital’s roots lie in Endemol, a major media company over the past 25 years. Deitmers and co-founder Martijn Hamann transformed Endemol from a Netherlands-based entity into a publicly traded, global organization through the acquisition of over 80 businesses. Endemol was eventually sold for a substantial sum.

A Focus on Entrepreneurial Success

Hamann added: “Our entire focus at Endeit Capital is on accelerating the progress of entrepreneurs who are shaping the future of the internet. We seek out individuals with a robust product and a relentless commitment to establishing market leadership.”

Cross-Border Investment and Regional Hubs

Hamann, speaking via video conference, noted the strength of cross-border investment, particularly between the Netherlands and Germany. He described a decentralized ecosystem in Germany, with hubs in Munich, Cologne, Berlin, Hamburg, Zurich, and Vienna, contrasting it with the more centralized nature of London or Paris.

He observed that multiple hubs are emerging across Europe, as highlighted in recent TechCrunch surveys, with cities like Rotterdam and Hamburg specializing in areas like logistics tech.

Brexit’s Impact on Financial Centers

Regarding the effects of Brexit, Hamann stated: “On the FinTech side, we are observing shifts towards Amsterdam, Frankfurt, and Paris. Amsterdam, in particular, is experiencing a boost in FinTech activity. We recently finalized a deal with a neobank located there.”

He believes that the financial centers are undergoing a subtle realignment.