Stride VC Closes Second £100 Million Fund

London-based seed investment firm, Stride VC, has successfully completed the raising of its second fund, securing £100 million – equivalent to $138.6 million. This amount mirrors the size of their initial fund.

The fund’s capital will be allocated primarily to startups located in London, with consideration also given to promising ventures across Europe.

LP Composition and New Investment

The limited partners (LPs) contributing to the fund consist of 10% fund of funds, 60% institutional investors, 28% family offices, and 10% individual investors. A significant 80% of the new fund originates from returning LPs, demonstrating continued confidence in Stride’s investment strategy.

The remaining 20% comes from two previously unnamed institutional investors who expressed their commitment in February following a swift due diligence process.

Notable Investors

Stride VC benefits from investment from prominent figures including the founders of Cazoo, King, PillPack, and Dott.

Institutional backing is provided by firms such as Delin Ventures, Draper Esprit, Mubadala, and CNP (Groupe Frere).

Fundraising Timeline and Personnel Changes

According to Stride founder Fred Destin, the fundraising process was accelerated by the interest of the new institutional investors. Initial plans called for a June launch, but commitments were secured by March 31st.

Stride has also experienced changes in its team. Harry Stebbings, co-founder of Stride, has departed to establish his own venture fund. Cleo Sham will be joining as a full-time partner in June, as announced via Twitter.

Last year, the firm also saw the departure of Paris-based partner Pia d’Iribarne, who has since founded Newwave.vc.

Future Team Expansion

Destin indicated plans to recruit a third partner and two additional team members. He emphasized a preference for exceptional talent, valuing individuality over conventional qualifications.

He stated a desire for candidates who demonstrate genuine skill rather than simply possessing standard credentials.

Talent Acquisition and Program Leadership

Shane Burgess has been appointed to lead talent initiatives, while Pietro Invernizzi, formerly of The Family, now oversees the “First Check Programme”.

Investment Strategy and Range

Stride VC remains dedicated to seed-stage investments, typically leading or co-leading funding rounds. The firm is expanding its investment scope beyond pre-seed funding, with initial checks of £250,000.

Investments can range from £750,000 to £4 million, with a typical investment of £2 million, and smaller rounds starting at £250,000. An example of a larger investment is the £4.5 million provided to Huboo.

“Artisan Venture Capital” Approach

Destin characterizes Stride’s approach as “artisan venture capital,” emphasizing investments in “small batches”. The firm embraces the inherent chaos of startups and prioritizes trust above all else.

Stride focuses on providing impactful support rather than seeking control, and prefers action over self-promotion, reflected in their minimalist website.

Founder-Focused Support

Destin explained that Stride generally avoids taking board seats, instead offering tailored support to founders. This support can include strategy sessions, recruitment assistance, and targeted interventions.

Founders have responded positively to this approach.

Portfolio Overview

Stride’s Fund I has invested in 29 companies to date, with Cazoo being among the most well-known. The portfolio includes investments in the following areas:

• API Infrastructure: STRAPI, Impala, WeGift
• E-commerce: Cazoo, Front of the Pack
• SaaS: SEDNA, Cord, Unibuddy

Destin believes that public announcements regarding company details and funding rounds are not always beneficial. He also noted that Stride does not require such publicity for its own recognition.

Many of the portfolio companies are intentionally operating discreetly.