Venture capital firm Plural has launched a new €400 million ($436.4 million) investment fund, Plural Fund II, with the goal of supporting European tech startups. The fund is the second for the firm and highlights their commitment to fostering innovation and growth in the European tech ecosystem.
Plural Fund II will primarily focus on investing in deep tech startups across Europe, specifically those working on complex challenges such as nuclear fusion and precision medicine. The company aims to compete with other established funds in the region and plans to distinguish itself by prioritizing founders who are tackling fundamental scientific problems rather than traditional software-as-a-service companies.
Since its inception in 2022, Plural has already provided financial backing to over 25 European companies, and the launch of Fund II will allow them to support even more. Their areas of interest span various sectors, including artificial intelligence (31%), frontier technology (16%), and climate and energy (14%).
Plural differentiates itself by having a founder-led focus, with experienced entrepreneurs and executives, such as Taavet Hinrikus of Wise and Ian Hogarth of Songkick, among its founders. They believe that their entrepreneurial experience sets them apart from traditional venture capital funds and makes them more effective partners for European startups.
Plural Fund II plans to make two to three investments per investor per year and seeks out what they refer to as the unemployable. These individuals may not readily join a VC firm or be employable at a startup, but each partner at Plural serves as an active angel investor.
Despite the challenging fundraising landscape, Plural exceeded its €400 million target, showing a strong appetite among institutional backers for European tech opportunities. The fund attracted a diverse group of limited partners, including British and American university endowments, US foundations, insurers, and strategic family offices in Europe and the United States.
Carina Namih, a partner at Plural, expressed optimism about Europe’s potential to produce major technology names comparable to US and Chinese giants. She highlighted the faster pace of technological breakthroughs in areas like artificial intelligence, which creates opportunities for emerging players to dominate entirely new domains.
The launch of Plural Fund II aligns with the growing startup activity in Europe over the past decade. The region has seen a significant rise in unicorn firms, valued at $1 billion or more, particularly in the fintech sector. According to Harry Nelis, a partner at Accel, the European tech sector has transformed into a robust ecosystem, making it easier for entrepreneurs to start and scale their companies.
Plural’s investment fund will undoubtedly inject much-needed capital and support into the European tech startup scene, bolstering innovation and propelling the region’s technology landscape to new heights. With their founder-led approach and focus on deep tech startups, Plural is poised to play a significant role in shaping the future of European tech entrepreneurship.
