Iron Wolf Capital targets EUR 70m for second vehicle

It anticipates launching Iron Wolf Capital Fund II in 1Q24, with around half of the fund expected from development financial institutions, and another half from private investors, Susnys said.

The Lithuania-registered sponsor expects to invest its standard ten-year lifecycle fund into 25 companies, primarily focusing on Baltic Artificial Intelligence (AI) and deeptech startups, Susnys said.

Iron Wolf Capital will offer entry tickets from EUR 500,000 to EUR 2m in pre-seed, seed and Series A investment rounds, Susnys said, adding that more than half of the fund will be reserved for follow-on investments. Its investment per single company will be limited to 10% of the fund size, he added.

The sponsor takes legal advice on the fundraise from WALLESS, Susnys said.

Debut fund
The second vehicle will continue the investment strategy of the VC’s debut EUR 21m Iron Wolf Capital Fund I, which was launched in 2019 and has a lifecycle until 2029, Susnys said.

The VC's first vehicle has made 22 investments in Lithuania, Latvia and Estonia to date, and still has dry powder for new deals, as well as follow-on investments, Susnys said.

It has not yet made any exits, although the investment horizon of an early-stage VC fund is longer compared to private equity, he said. The sponsor expects exits via trade sales or IPOs of its portfolio companies, Susnys said, without further elaborating on its exit plans.

Some of its portfolio companies are planning Series A investments, including Pixevia, a Lithuanian AI-based smart retail solutions specialist; EyeVi Technologies, an Estonian AI-powered platform for geospatial data production; and Turing College, a Lithuanian online AI college, Susnys said.

Turing College’s CEO and co-founder Lukas Kaminskis told Mergemarket in September 2021 that the company expected to finalise a minimum USD 5m Series A within the next 15 to 24 months.

EyeVi’s CEO and founder Gaspar Anton told this news service in August 2022 that the company was planning to raise an EUR 10m Series A round in early 2023.

Meanwhile, Squad Robotics, a Latvian robotics startup backed by Iron Wolf, was planning to raise a EUR 4m seed round this year, as reported in January, citing CEO and co-founder Matiss Brunavs.

Another of Iron Wolf’s portfolio companies, Litilit, a Lithuanian laser technology company, is planning a Series B round of up to EUR 25m in 2024, as reported in November 2022, citing CEO and co-founder Nick Gavril.

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