Venture fund Headline has been investing in tech startups since 1999, which might have tempted headline writers, perhaps unfairly, to use the word “dinosaur” if the fund hadn’t continued to be so active since then. Suffice it to say, there has been a lot of work since that “chalk era” with 11 IPOs and exits worth over $1 billion in the last 2 years, as well as investments in unicorns like Bumble, Sonos and Farfetch, to name just three.
The headline of this story may well sound colossal: $968 million / €950 million, but the numbers are actually a bit more arbitrary when looking at how that money is being used.
Headline’s seed investment teams invest “offline” in three separate funds located in four regions: Europe, US, Latin America and Asia.
The three separate early-stage funds split as follows: The Headline US management team, headquartered in San Francisco, California, closed Headline US
VII, a US$408 million fund focused on North America.
At the same time, Headline Brazilian’s management team closed Headline Brazil III, a R$ 915 million Latin American-focused fund based in Sao Paulo.
Finally, the EU-based Headline leadership, headquartered in Berlin, Germany, has raised Headline EU VII, a €320 million pan-European fund.
But when their portfolio companies need extra capacity during the growth phase, these individual funds are then merged and also share what it claims is “the same culture, technology and investment philosophy of Headline.”
The firm says it uses its own built-in AI sourcing system, dubbed EVA, which filters the deal flow, as well as its own business intelligence platform, dubbed ATHENA. Again, all VCs have these platforms these days, so it’s nothing special.
Now this European fund figure is much more “normal” in terms of funds these days, and it is notable that the Latin America-focused fund is much larger, perhaps indicating significant opportunities exist in this region.
In a statement, Matthias Schilling, co-founder and managing partner of Headline US, said: “Despite recent market shifts, we continue to relentlessly pursue the next wave of world-changing innovation. I have witnessed a significant share of market downturns over the past 20 years, and throughout this time we have continued to seek and develop an entrepreneurial spirit with a long-term focus. We believe Headline is in a unique position with our teams in the field and a measured, methodical approach to investment based on our own technologies.”
Christian Leibold, co-founder and managing partner of Headline EU, added: “Our early stage focus allows us to work closely with the best and brightest entrepreneurs with a leadership mindset to drive their growth and accelerate market penetration. We have built a strong multinational portfolio of European up-and-coming companies following the guiding principle of “work in a team and with great people” and we will continue to follow this guiding star with our latest fund.”
Headline funds will invest between $1.5 million and $15 million in startups starting at an early stage.
Other unicorns in Headline’s portfolio include GoPuff, Sorare, Raisin DS, Swile and Staffbase, as well as an early-stage portfolio of over 200 investments.
Credit: techcrunch.com /