Singular: New Paris-Based VC Firm Launches with $265M

Introducing Singular: A New Venture Capital Firm in Paris

A recently established venture capital firm, Singular, has completed its initial fundraising round and is based in Paris. The firm was founded by Raffi Kamber and Jérémy Uzan, both previously partners at Alven. They are pursuing ambitious objectives and have developed a distinctive investment strategy designed to facilitate continued participation even in later funding stages.

Fundraising and Initial Capital

Singular successfully raised €225 million, which translates to approximately $265 million based on current exchange rates. The firm’s website previously offered limited information, but has since been updated to include a list of its portfolio companies.

A Deliberate Approach to Transparency

The Singular team prioritizes discretion but isn’t aiming for secrecy. Their name may have appeared in previous articles, and now they are detailing their investment philosophy for startups.

Founders’ Background and Motivation

Jérémy Uzan and Raffi Kamber dedicated 11 and 8 years to Alven, respectively, contributing to several of the firm’s most successful investments, including Algolia and OpenClassrooms. Uzan explained that with each subsequent fundraise, a long-term commitment is required.

The pair departed Alven to proactively shape their professional trajectory, maintaining positive relationships with their former colleagues.

A European Focus

Singular’s timing was ideal, both personally and within the broader tech landscape. While headquartered in Paris, the firm intends to establish itself as a pan-European VC firm. They believe that London shouldn’t be considered the sole focal point for tech investment across Europe.

The Fundraising Process

Fundraising commenced in late 2019 and early 2020. Kamber and Uzan navigated the fund-raising process without prior experience and without engaging an external financial firm.

Interestingly, the onset of the coronavirus pandemic proved beneficial, as the resulting lockdowns kept potential investors readily accessible. Approximately two-thirds of Singular’s limited partners are located outside of France.

Investor Confidence in the European Tech Scene

“These are established, experienced VC investors who possess a strong belief in both technology and Europe,” Kamber stated. They recognize the growth trajectory of the European tech sector over the past few years.

A Diverse Investor Base

Singular actively sought backing from prominent investors, with some contributing to a French VC fund for the first time. The limited partners encompass pension funds, funds of funds, sovereign wealth funds, and family offices.

Backers include Ontario Teachers’ Pension Plan, Bpifrance, Vintage Investment Partners, Axa Venture Partners, Sofina, MACSF, and Mubadala Capital. Investors like the Ontario Teachers’ Pension Plan, with over $200 billion in net assets, represent significant financial power.

Initial Investments

Singular began making investment decisions around October 2020, and has since invested in six startups:

• A Series B investment in Gtmhub, a platform for OKR (Objectives and Key Results) management
• A Series B investment in Indy, an accounting automation software solution
• A Series A investment in Soda, a data monitoring platform designed for enterprise use
• A seed investment in Moka.care, a mental health support service for employees
• A seed investment in Resilience, a software-driven approach to cancer treatment
• An additional, undisclosed Series A investment

Investment Strategy and Focus

While a clear pattern isn’t immediately apparent, the average check size provides insight. Singular primarily targets Series A and B rounds, recognizing the potential for substantial growth at these stages. The firm can allocate up to €20 million ($23.6 million) to a single investment.

Singular identifies as a generalist fund, maintaining an opportunistic approach and avoiding strict vertical specialization. They are open to both B2B and consumer-facing businesses, as well as opportunities in areas like AI and e-commerce.

A Novel Approach to Late-Stage Funding

Singular differentiates itself with a unique strategy for late-stage rounds. Recognizing potential limitations in capital for follow-on investments in Series C or D rounds, they will establish special-purpose investment vehicles in collaboration with their limited partners.

This allows a select group of limited partners to directly invest in the startup, potentially facilitating new funding rounds without requiring a traditional late-stage fundraise.

Maintaining Involvement and Offering Flexibility

This approach enables Singular to remain actively involved with portfolio companies, potentially retaining a board seat and influencing future strategic decisions. While not obligatory, this option provides entrepreneurs with a valuable alternative.

The Team and Future Outlook

Eva Mayoud, Alexandre Flamant, and Sonia Pélisson have also joined the Singular team. Raising €225 million in a year from a standing start is a notable achievement for a French VC firm. Tracking the firm’s future investments will be of considerable interest.

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