Adding another roman numeral. Welcome Kibo III
It is not every day that one announces the start of a new fund. Adding a roman numeral when we are in the low numeral territory is actually a big achievement. Investors have more years of data to compare funds track records, funds have had more time to build cohesive teams and make good investment decisions. Of course it is still early days in the life of funds but at this point numbers need to be compelling or funds may not be given a third chance. So, yes, we are proud of the birth of Kibo III. We believe we can continue to find great teams and we are humbled by the vote of confidence of so many LPs in our ability to create value.
This is also a time to reflect on what has worked and what hasn’t and refine our strategy going forward. It is also a time to share what we intend to accomplish and how we want to do it. Providing clarity to founders can only be good. So, here it is, read on…
1. Our size
Following on Fund I €43M, Fund II €71M, Fund III targets €100M. We intend to invest in approximately 20 companies as we did in Fund II but a slightly bigger fund will give us more dry powder to invest in follow on rounds which are getting larger as the ecosystem evolves. We will double down on best performers.
2. Our investment stage
We will continue to come in at the pre-series A/series A investment stages. We will look at writing initial tickets between €1–3M to back teams that have already shown strong product market fit. We will of course look at investments outside of these ranges if we like the founding team. So come talk to us if you are in our sweetspot but also if you are not and we can get to develop a relationship early on.
3. Our investment strategy
You, the founder, are increasingly more in the driving seat. You will decide which fund is best for you. This is not a one size fits all situation. Knowing how to choose and who to choose will be important. This is what we look at when we make our investment decisions.
- We invest in companies where technology is a clear differentiator. (Devo, Defined Crowd, Carto, JobandTalent, Vilynx or Paack are a few examples)
- We have strong interests in big data/AI, mobility/logistics, enterprise software, health and edtech.
- We are very well placed to identify companies with tech hubs in Barcelona, Valencia, Madrid, Coruña, Lisbon or Porto. We love global companies with very capital efficient structures.
- We believe great companies can be created anywhere. We have invested in teams in Europe, the US and Latin America. We keep an open approach to geography and see great potential in European startups.
- We will invest around 50% of our fund on follow on rounds. We want to grow with the teams we back.
- We invest for and foremost in strong teams. Strong meaning global, ambitious, tech savvy and with a clear ability to hire great talent.
4. Our value-add to founders
Knowing our sectors of focus and our investment stage can get you so far. Understanding how we can add value is really what you should be after. These are our thoughts but probably best if you also hear it from our founders.
- Laser focus on getting you to your next round with the best investors. 55% of our companies (Fund II) have gone to complete series B rounds with Tier 1 VCs or exited to large multinationals. During the pandemic, our portfolio companies have raised €160M in series B+rounds. These include Devo $60M round or Defined Crowd $50M round.
“Kibo’s impressive network both in the US and in Europe is helping us to get the right doors to open — not only among the top VCs in the world, but also with the highest instances of Spanish corporations in the public and private sectors.” Daniela Braga, CEO & Founder at Defined Crowd.
- Connecting you with investors and top corporates across the world. 81% of our Fund II companies have international investors in their cap table
“Kibo has been super active with Paack since they joined as the series A leader. Very helpful, insightful and extremely well connected with investors and corporates. They are for us 24/7 and have been instrumental in taking strategic, funding, and team decisions. And I have felt how close the full Kibo team is in some tough moments.” Fernando Beneito, CEO & Founder at Paack.
- Giving you access to a unique portfolio network. We have built a truly stellar portfolio of 53 companies including companies such as Flywire (unicorn status after $120M Series E led by Goldman Sachs) or Tier Mobility, fastest growing mobility company. In Fund III we have also opened an entrepreneur tranche so you can access +20 leading entrepreneurs committed to giving back to the tech ecosystem.
“Kibo helped us a ton in our early days as we launched in a new market, opening different doors and connecting us to the relevant people in the ecosystem.” Lawrence Leuschner, CEO & Founder at Tier Mobility
“It’s now 7 years since we partnered with Kibo Ventures and they continue playing a very active role in J&T. They were our first institutional investor and have always been there for us, since the startup days, but also during our scale up phase. Were able to adapt to extremely difficult situations, when their support with strategy was key for both management and the company. Their strong reputation as VC of choice in Spain and involvement with J&T helped us provide extra comfort to our pool of international investors.” Juan Urdiales, Co-CEO & Co-founder at JobandTalent.
- Providing experience in selling our companies (11 exits to 10 large US buyers including PayPal, Groupon, AirBnb, AON, New Relic among others)
“I have known Kibo for over 8 years now. They invested in my previous company (Blink) and my current one (Clarity AI). We highly value their expertise and their understanding and alignment with the long term vision of our business. Most importantly, they have been incredibly supportive during difficult times, professionally and personally, which is critical to make a startup successful.” Rebeca Minguela, CEO & Founder at Clarity AI.
- Helping you through thick and thin. We will truly get involved, we see ourselves as your partner, if you win we win and we will make sure you feel you can count on us every step of the way.
“Kibo has always being a great support in the good times, but more importantly in difficult ones. This is something I will always remember and that makes Kibo Ventures a great long term partner. I am grateful to have you with me in the Devo journey. Thanks!.” Pedro Castillo, CEO & Founder at Devo
5. Our values
We love what we do. We know we can help founders. We want to give back. We thrive on the passion our founders have for their companies. We feel their companies are also our companies. We want to connect you to other founders, to other great investors. We are a mixed bag of people who have chosen to do this because we don’t see ourselves anywhere else. We are far less than perfect, we have a lot to learn, we are, as the post says, on a very low roman numeral still. We know it is ultimately up to the founder to find the right investor. We are excited about the times ahead and about the new founders we will meet along the way.
If any of this resonates, Kibo III is open for business. Come talk to us.