A new wave of Solo GP VCs is coming to Europe and Hypernova hopes to power it
While the US has had a long history of solo VC fund managers, the European trend is just beginning to catch up. One of the most recent is Underline Ventures ,, which was started in Romania by Bogdan . His path to Solo GP fits the profile. He is a former entrepreneur and a key player of the Eastern European tech scene. He was also the founder of the How to Web conference and a former VC in a multiple Partner group.
Europe needs more ‘funds’ that are specialized in working with the new wave of European Solo General Practitioners.
Hypernova, a $25m fund which soft-launched in June has been founded by experienced investor Tugce Ergul. She plans to invest not only in other funds, but also directly into startups. Ergul was formerly with Angel Labs, an “investor accelerator”, which spread across 44 countries.
Ergel stated to TechCrunch that there is a new wave in funds. These are successful founders who have started their own funds to invest into new entrepreneurs. Because it’s now easier and cheaper to start your own fund, partners are leaving their previous funds. And there’s more support for solo capitalists.”
How does it work? Hypernova puts 40% of its fund into Solo GP funds, and the rest directly into startups, with 50% in the US and 50% in Europe.
Ticket sizes will be $500k-750k into these Solo GPs who are raising their first fund, and Hypernova will aim not just for financiers but potentially journalists, angel investors, former entrepreneurs, or Associates / Partners spinning out of their previous VC fund.
Hypernova offers new GPs support on the fund management side, the tech needed, LP introductions, branding support, and coinvestment opportunities
Ergel stated that in the past, Solo VCs were not allowed to receive money from LPs. “Now there is a new world where you can find LP money if there is only one person and a single GP. It is now easier to start funds. You can set up a fund for $10,000 and your fund admin costs are really low. This makes it easier for fund managers to access the fund. We want to support these fund managers. That’s when the hybrid play comes in because the other half is a direct investment vehicle. We will either co-invest with the funds we invest in or we’ll invest in the follow-on rounds into the winners.
For its direct investments, Hypernova plans to focus on automation, retail, finance, logistics, transportation and shipping, with $250k-500k ticket sizes, and it won’t take board seats.
Hypernova claims to be the first European female-led solo GP Fund and the first US female-led solo GP Fund-of-Funds
Since June’s soft launch, Hypernova claims it has:
– Invested in an early stage infrastructure fund based out of San Francisco
– A London based fund managing athletes’ money
– A Berlin based, solo GP fund
– LA-based deeptech fund
– San Francisco based fund investing (Fund II) in LP secondaryaries.
– Invested directly in a hydrogen marketplace based out of San Francisco
– DevOps for carbon removal companies based out of Berlin
– Cohort based learning and talent platform based out of London called Neol
– A Micro-fulfillment platform that optimizes the last mile
It plans to open a London office and hire a London-based partner by January 2023.
It’s launching a diversity and inclusion program for LPs to bring new investors into the fund-investing world. They could co-invest with very small amounts.
” I’m a sole venture capitalist,” Ergel said. That’s also a new thing for the markets. This was started because I had experienced so many difficulties as a solo GP. If I had opened this fund in the USA as a US-focused American fund, it would have been closed in six months. It took me a lot longer .”
because I wanted to do something that bridges the US and Europe.
I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.