Tapestry VC has launched Fund III at £60 million, a venture capital fund backing repeat founders across Europe and North America at seed and pre-seed stage. The fund is nearly three times the size of the firm's previous fund and deepens its focus on founders building for a second or third time.
Sector-agnostic in approach, the fund invests across software, AI, cybersecurity, fintech, autonomy and deep technology. Tapestry VC specialises in working with founders before a company or formal process is even in place, supporting product direction, hiring and fundraising, and takes a transatlantic approach that backs founders aiming to build global companies from day one.
Fund III is co-anchored by a £30 million commitment from British Business Bank, alongside returning institutional co-anchors Railpen, a £35 billion pension plan, and Molten Ventures, a £1 billion fund-of-fund. OpenAI chief financial officer Sarah Friar is also joining the fund. The launch coincides with the opening of Tapestry VC's flagship London office and co-founder Patrick Murphy's relocation from San Francisco to London.
According to Dealroom data analysed by Tapestry, companies built by second and third-time European founders are worth $2.2 trillion in combined enterprise value and employ more than 2 million people across 23,000 companies, up from 300,000 employees in 2018. European tech has produced 477 unicorns over the past eight years, 60 per cent of which were started by a repeat founder. Repeat founders in Europe raise 45 per cent more capital than first-time teams, and 75 per cent of startups worth over $50 billion globally were founded by serial entrepreneurs.
Tapestry VC's portfolio includes Nothing Technology, which is on track for £750 million in sales this year following a £150 million funding round led by Tiger Global, and Fin AI, which was acquired by Salesforce for £2.7 billion in June. The firm also backed Hopin, which reached a £5.8 billion valuation. Tapestry VC has been ranked the number one VC in Europe, and third in the world, for backing Seed and Pre-Seed companies that go on to raise Series A rounds from top-tier US firms, with a 100 per cent graduation rate among its recent repeat founder investments, including Sunrise Robotics, Maze AI, Tracebit and Requesty AI.
I've spent a decade investing on both sides of the Atlantic and the opportunity in Europe has never been clearer. There's an entire generation of founders returning to build again with sharper instincts, deeper networks and who share our global-from-day-one ambition.
Today's repeat founders represent a generation shaped by expensive experience. They've already navigated the realities of building, scaling and exiting technology companies and, second time around, they want partners who have felt the same pressures. This is what Tapestry VC brings.
