In a highly newsworthy event for the VC arena in Europe, Redalpine, a Swiss VC firm focusing strongly on science, has closed its biggest fund ever, Redalpine Capital VII (RAC VII) at $200 million. The first fund attracted more interest than the initial target and it was raised in a period in which many VC funds experienced difficulties.
Funding Details
The amount raised is $200 million. The lead investor was identified to have invested the largest amount of money in the company is Nexus Venture Partners. RAC VII is on its way to support 15 to 20 early-stage companies from Europe, out of which nine investments have been made, one of them is Proxima Fusion, a German nuclear start-up. The capital will also fund the establishment of another office in London.
Redalpine’s due diligence process
Redalpine is a Swiss venture capital firm that takes ESG factors into account. A key component of Redalpine’s ESG efforts is DEI, climate, culture, and ethics. The organization evaluates its portfolio companies using ESG standards to manage and invest responsibly. In due diligence, Redalpine gathers all the necessary information from potential members of the portfolio. Technology founders complete a standard questionnaire, and then it is evaluated by Redalpine investment personnel.
Some of the consequences that may arise due to non-compliance include affecting investment decisions. Depending on some criteria like the size of an organization, the nature of its activities, and the scale of operations, Redalpine’s ESG Policy changes. They adjust principles in relative terms based on individual company conditions. The purposeful investing principles that Redalpine holds, specifically responsible investing, actions, and deep tech focus are reflected in its due diligence.
Deep Tech and Sector Agnostic Approach
Top-quartile returns that Redalpine has posted for the last few years also helped in getting the new funding. However, the average net return for the 10 years has been 24% per annum across seven of its funds. Redalpine was founded in 2006 and works within the “continuum of software and science” in Europe, which corresponds to its investment thesis for the region and its current investment interests in European deep tech.
The strong and connected networks with universities and the science community offer the necessary benefit in terms of deal flow. Like in RAC VII, Redalpine stays sector-neutral which means the company can be a pioneer in different sectors such as energy, health, and food sectors. This diversification has helped reduce risks and increase the stability of the business regardless of the changing market conditions.
Redalpine’s Investment Criteria
Swiss venture capital firm Redalpine has a rather different investment strategy compared to the other European counterpart firms. Redalpine enshrines the continuity between software and science. Their target is early-stage European deep-tech startups that bring science to software solutions. Their seventh fund and the biggest they have ever raised, RAC VII invests in 15-20 young European businesses. They’ve already invested in promising startups including the German nuclear venture company known as Proxima Fusion.
Experience is also paramount in this kind of investment and with Redalpine having averaged a net return of 24% per year over the last ten years there is confidence that the investments will yield good returns. Due to their experience and performance, they have limited partners willing to back them and double down on their vision.
Despite this shift, Redalpine is still willing to invest across multiple industries, such as energy, health, and food segments. This gives them efficiency even in unstable markets, due to the broad market coverage they give. Strong university and scientific connections are a strength for Redalpine. This unique combination of scientific, entrepreneurial, and investment knowledge leads to success.
Conclusion
Redalpine Ventures’ focus on data ecosystems, Seed stage investments, and the Deep tech industry in Europe makes them a category creator in the VC space. Their contributions to the startups and the technology sector in Europe will define them further as they grow and move forward.
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