New fundraising milestone validates Felix opportunity and thematic strategy
Adding Andrew Robb (Farfetch) and Thijn Lamers (Adyen) to Advisor group
Technology is changing everything, how we live, how we work, the products we buy, how we buy them and the brands we trust. The customer’s journey is reinvented by the Creative Class’ imagination and entrepreneurship. These new, digital-first products and services reshape our daily lives and our culture. This is the “digital lifestyle” era, the opportunity Felix is going after. Today we announce that we have raised an additional $300m to partner with such brands and entrepreneurs, doubling down on our core thesis.
This is a real milestones for the Felix platform, following the previous funds close in 2015 ($120m) and 2017 ($150m), enabling us to continue to invest early (our main focus) and selectively invest at growth stages in breakout companies, within our themes. With over $600m under management, backed by an institutional and international investor base, we are doubling our size with deeper resources at the start of this new decade. In uncertain times, politically, economically, and socially, we have the means to execute on our strategy and the conviction that the transformation of the world through digital technologies is only accelerating. In addition we believe that a thematic investment strategy is very helpful in light of the breadth of opportunities, the speed of change and the increasing need for specialisation. Our goal remains to offer “differentiated capital” to founders in the digital lifestyle segments we are targeting.
Building a new investment platform
It’s still early in the Felix journey, with lots to prove — it takes at least a decade to build an investment platform and we are 5 years in. When we launched, we had a vision that the rapid transformation of consumers’ behaviour offered a large opportunity and needed focus. We are gradually building a portfolio of companies in line with our strategy, now including 32 companies, all within Felix themes, across 8 countries, with a focus on emerging and culturally relevant consumer brands, as well as related B2B technologies that support them. Some of these companies have hit key milestones, notably Farfetch (NYSE: FTCH) and Peloton (NASDAQ: PTON) with their respective IPOs.
We are proud of the community of founders who have trusted us as partners in their journey so far, as we curated a portfolio of consumer brands (e.g. Anine Bing, goop, Highsnobiety, Mejuri, or Peloton), platforms (e.g. Deliveroo, Farfetch, Moonbug or TravelPerk) and related B2B enabling technologies (e.g. Mirakl, Perfectstay, Unmind or Yoobic).
We are not changing our Manifesto. This is a set of core principles that have been our Compass and will continue to guide our strategy but also how we behave in the market and as an organisation.
We have a secret tool, a great group of advisors. We are strengthening this group with the addition of Thijn Lamers, former EVP Global Sales of Adyen, and Andrew Robb, formerly COO at Farfetch, where they were both instrumental in shaping these successes from startup to IPO. In total, we have 15 individuals who are helping on founder mentoring, market insights access and sourcing. Felix has also hired a new CFO, David Oglesby, formerly with Bridges and BC Partners. The investment and advisory teams at Felix comprise of 24 people, 15 nationalities with diverse experiences and cultures.
What we invest in
We remain focused on our thematic approach with more flexible capital. The new funds enable us to continue to invest early but we know have dedicated capital for co-investment, both in our past companies but also in growth stage businesses on a breakout path where can be helpful and relevant.
As the transformation of lifestyles through digital technologies continues, the Felix Capital team will continue to seek exposure to the key investment themes it identified, such as:
- The reinvention of the customer journey, from inspiration through transaction, with new brands, new models, new tools;
- The emergence of modern brands that connect with people in an authentic way and build engaged communities across social platforms and in the physical world;
- Tools and platforms enabling creators to make a living and connect with their audience;
- Wellness as a core global trend, as people aspire to have a better life, with the help of digital tools and services;
- Opportunities where passion is a key differentiator, building businesses combining IQ and EQ, logic and magic
We think consumer first but we do B2B too. Typically 30–40% of the amount invested by Felix backs B2B companies, mainly software and solutions, targeting specific corporate needs that we understand (engaging with customers, transforming retail, managing employees in the age of mobile and the Millennial workforce, etc.).
Finally we ought to thank all our friends who helped us along the way, the many VCs who allowed us to partner and co-invest and obviously the founders who invited us in their journey (and their cap table!). And naturally we want to thank our investors. It was humbling and frankly exciting to see the amont of positive feedback from existing investors who have been backing us fund after fund, and also the new investors who have now toured us with they capital, having often tracked us for 3–4–5 years! We are extremely grateful for the continued support of investors, co-investors and founders.
As we think about the future, and our own path to growing up, we want to keep our style, our “boutique” approach, with a craftmanship element to what we do. Felix’s vision remains to build a venture firm for the Creative Class, at the intersection of technology and creativity, this clarity of purpose helps our everyday decisions and actions. This new fundraising also means that we will be looking to expand our team. If you are passionate for our target markets, for the transformation of the consumer landscape, for the emerging digital brands that impact culture as well as the technology behind this transformation, please reach out, we would love to talk to you.
The Felix team.