Lakestar calls time on generalist venture funds
Lakestar, a major European venture capital firm with investments in companies like Revolut and Spotify, is shifting its strategy away from raising new generalist funds. This significant move reflects a changing landscape in the European VC market and a renewed focus on maximizing returns from existing portfolio companies. The firm intends to concentrate on its current investments, signaling a strategic pivot towards supporting its portfolio's growth. Lakestar's founder, Klaus Hommels, outlined the decision in a letter, citing the need for new strategies to address market challenges. The firm, which has raised over €2 billion in the last 12 years, will now focus on larger, more concentrated investments using its own capital. Lakestar's new approach includes targeted investment products to help portfolio companies like Helsing and Neko Health expand, demonstrating a shift from generalist to a more focused investment strategy. This strategic shift will likely impact the European tech ecosystem by potentially changing the flow of capital and the types of investments. The move towards supporting existing portfolio companies suggests a focus on later-stage funding and a potential consolidation of investments. This change could create challenges for early-stage startups seeking funding, requiring them to look elsewhere for support.
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