Mangrove holds first close on $170m for fifth VC fund

The VC will target European technology companies in the early stages of development, with additional capital available for add-ons.

Mangrove expects to hold a final close before the end of the year but does not anticipate the fund size going over €200m.

The fund was raised in two months with 90% of the commitments coming from existing investors. The VC firm's first two funds both returned an IRR of more than 20%, according to a source close to the situation.

The vehicle will run a three-year investment period and a 10-year lifespan, with a two-year extension available. Management fees and carry will follow the standard 2/20 model. 

Investors
There are a "couple" of large institutional investors in the fund as well as a "handful" of smaller family offices, according to a source close to the situation. Mangrove does not offer co-investments officially but is said to encourage family offices that want to take a larger stake in its portfolio companies independently.

Investments
The fund will make around 25 initial investments in the region of €1m, with further rounds available for successful companies. From its last fund, the VC made an $8m investment in Wix.com which eventually turned into a $550m stake. It also turned an early-stage $2m investment in Skype into a holding worth $200m.

People
Mangrove Capital Partners – Mark Tluszcz (CEO).

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