Lakestar launches double fundraise

Lakestar has split the new strategy into two Guernsey-registered vehicles with a combined target of €800m.

Lakestar III has a target of €250m for early-stage investments and Lakestar Growth I has a target of €550m to be invested in larger rounds.

The VC firm already has a track record of doing both early- and later-stage investments but has previously combined them into one vehicle.

Lakestar II held a final close on €350m in August 2015, which was a marked increase on the €135m raised by Lakestar I in 2013. Lakestar I is expected to generate an overall money multiple of 3.5x for the first fund.

Monument Group is acting as placement agent for the latest fundraise, KWM is providing legal advice.

Lakestar and Monument declined to comment on the fundraise, KWM did not return a request for comment.

Investors
Lakestar's investor base was mostly European for Fund I but attracted some US-based and Asian investors for Fund II, and is expected to do the same for the latest fundraise.

Investments
The new funds will give Lakestar the flexibility to invest from very early stages up to much larger later-stage rounds. Lakestar II invested between €500,000-50m, whereas the new Growth vehicle may invest up to €100m and co-invest in much larger rounds.

The fund will also back companies headquartered outside Europe that have the potential to expand their European presence. It also has the capability to invest in the pre-sale stage of ICOs, which was forbidden under the terms of Fund II. 

People
Lakestar – Klaus Hommels (founder).

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