Founders have all manner of support to help them get up and running with their businesses. VCs, less so — until now.
Early next year, advisory firm Mountside Ventures is launching Europe’s first VC fundraising accelerator. It’ll take on 15 emerging managers and “help them become better fundraisers”, says Jonathan Hollis, the firm’s managing partner. “It’s not to help investors become better investors; it’s to identify and connect them with relevant LPs.”
There are, according to data platform Dealroom, around 2,500 active VCs in Europe; only 275 of those have raised their third fund.
The hope is also that the accelerator — which will be free for participants — will “level the playing field for underrepresented managers”.
“We’re hoping every VC in Europe applies,” adds Hollis. “The only people we expect not to apply are people who have LP money thrown at them.”
The details
The first programme will start late January 2025 and run for 12 weeks. It’ll include matchmaking events around Europe, mentoring from LPs and established VC partners and fundraising workshops.
VC mentors include LocalGlobe’s Robin Klein, Dawn Capital’s Haakon Overli, Speedinvest’s Oliver Holle and Connect Ventures’ Sitar Teli; LP mentors include Christian Stiebner, KfW senior investment manager, Yvonne Bajela, partner at Basecamp (LocalGlobe’s fund of funds) and Dario de Wet, founding partner at fund of funds LTV Capital. Each mentor has committed to give 10 hours to the programme.
Mountside will select participants based on “similar criteria to LPs”, says Hollis: “Thesis, subject matter expertise, unique sourcing advantage, track record, how much they have committed [to the fund already], team, what makes them win…”
VCs need to be ‘emerging managers’ (ie. working on their first to third fund — although Mountside is fairly loose with this definition) based in Europe.
Applications will be reviewed with Blue Future Partners, a fund of funds which is working with Mountside on the accelerator. The costs of the programme are covered by its partners: fund administrator HFL, law firm Osborne Clarke, tech giant Sage, PR firm Ballou PR, advisory firm Leela Capital and accountants Johnston Carmichael.
If a VC has been fundraising for a long time, it wouldn’t count against them in their application, says Hollis — “as long as they can show progress”. Mountside is, however, hoping for a diverse portfolio of fund managers — fund vintage, geography and sector. “We’re not looking at bringing onboard 15 solo GPs running AI funds,” he says.
Applicants who don’t make the cut will receive a best-in-class VC fundraising deck, and a list of LPs, says Hollis. “Even if they don’t receive a place, they will get a bunch of support.”
The challenge
“VCs are constantly fundraising, regardless of whether they admit it,” says Hollis, who should know; Mountside has reviewed more than 1,200 pitch decks from VCs applying to attend the LP conference it’s run for the past five years..
“Access to institutional investors and family offices remains difficult and incredibly challenging,” he adds. “When founders are pitching to VCs, it’s their job to speak to you. When VCs are pitching to family offices, there’s nobody paid to speak to you.”
