Austrian VC firm Fund F has closed its first fund of €28m to back early stage, gender-diverse teams — surpassing its initial target of €20m.
Founded in 2022, Fund F was designed to plug more cash into female-founded teams who still only get a smidgen of the total VC funding invested into startups.
The firm will write cheques of roughly €300k for 25 pre-seed and seed stage startups in Europe that have at least one female cofounder — who, importantly, have equal representation on the cap table. It plans to save 60% of the fund for follow-ons.
Fund F did a first close of €12.5m in October 2022 — and while the “challenging market environment” may have complicated fundraising, it also “underscored the importance of finding trusted long-term partners,” Fund F’s cofounder Lisa-Marie Fassl told Sifted.
The EU-backed European Investment Fund (EIF) invested €10m in the firm at its final closing, sending a “powerful signal” that institutional investors recognise the value of diverse teams and their potential for big returns, adds Fassl.
Levelling the playing field
Fund F’s LP base is a mixture of entrepreneurs, angels, family offices and institutional investors — a third of which are women.
Existing LPs include public investor Austria Wirtschaftsservice GmbH via its Venture Capital Initiative, the Austrian bank Raiffeisen Landesbank Steiermark and super angel Hansi Hansmann of the Hanswomen Group, whose investments include edtech startup Mimo and Tractive, which offers GPS tracking for pets.
“We often talk about the importance of gender diversity when it comes to founders and VC investment decisions, but diversity among LPs is just as critical. It shapes how capital is allocated, what opportunities are prioritised, and who gets to build the companies of the future,” says Fund F’s cofounder Nina Wöss.
“Many women don’t see themselves as the target group for traditional VC funds, and that limits the pool of potential investors. By broadening our LP base, we’re not only increasing representation but also creating access for those who might otherwise feel excluded from this asset class.”
“Ultimately, when more women participate as LPs, it sets off a cycle where they reinvest, become advocates, and help build a more inclusive economy.”
Part of Fund F’s strategy is to lead the rounds of 30% of its portfolio companies.
“Many early-stage rounds led by female founders take longer to close or fall apart entirely because they struggle to find a lead investor, even when their team and model are clearly VC-ready. That’s exactly where we step in,” says Fassl.
“Taking the lead role has become a clear USP for us, and we’re already seeing the impact. The companies where we’ve led the round are showing the strongest performance in our portfolio so far.”
Fund F is sector-agnostic but is particularly focused on healthtech and climatetech. The companies it invests in must have digital and scalable business models that not only have the ability to make money, but promote equality within their own workplaces.
Since its first closing, Fund F has made 14 investments, including in KOA Biotechnology, which uses underwater sensors to detect infections at fish farms before they can spread and AI-BOB, which offers AI assistants and apps for public housing authorities.
Read the orginal article: https://sifted.eu/articles/fund-f-28m-diverse-founders/
