Move Capital plans 2023 final close for debut European growth fund

They declined to specify how much the fund would secure for the upcoming closing.

The VC is hoping to secure foreign investors for the fund’s second close, the co-founders added. The vehicle will target at least 20% net IRR.

Move Capital Fund I was launched in January 2020 and held its first close in February 2020, raising more than EUR 100m, Sursock said. “The fundraise took longer than anticipated due to the pandemic, but now we have funds to invest in a market very favourable to buyers," Malaussena said.

Move Capital acts as the technology growth strategy of asset management firm Kepler Chevreux Invest, Sursock said. LPs in the firm's debut fund include the European Investment Fund (EIF), France’s state-owned investment fund Bpifrance, telecoms businesses Orange and Nokia, as well as family offices, she added.

Data protection commitment
Malaussena and Sursock decided to launch Move Capital to address the need to support European champions to guarantee data privacy on the continent, Malaussena said. Data protection is one of Move Capital’s core commitments, they added.

Move Capital conducts an annual assessment of the firm’s carbon footprint and signed the Sustainable IT Charter by INR. The fund systematically implements ESG due diligences with partner EthiFinance according to its website.

Move Capital invests in B2B companies across the entire data value chain through several sub-sectors: cloud and connectivity, AI, cybersecurity, IoT, digital transformation, industry 4.0, and automatisation, they said.

The VC’s debut vehicle made its first deal in February 2022, Sursock said, taking part in a funding round for French cybersecurity platform Gatewatch. The company secured a EUR 25m first round from Move Capital and several undisclosed financial partners, as reported.

The fund is in exclusive talks for its second investment and in advanced discussions with several companies in France, Spain and Germany, they said. The fund should be entirely deployed in three years over 10 to 12 deals, he said.

Pan-European approach
Move Capital Fund I exclusively targets the European market, focusing mainly on France (40% of its allotment), but also Germany, Spain, Italy and the Nordics, Malaussena said.

It typically invests in exchange for a majority stake or an active minority stake of 10% to 30% of the target’s share capital. The firm always has at least one seat at the board, he added.

Fund I focuses on companies with at least EUR 10m revenue or EUR 5m annual recurring revenue (ARR) with an established business model, he said. The vehicle’s targets are not necessarily profitable but should aim to be in two to three years, he added.

Its average ticket will be EUR 10m-EUR 15m, with up to EUR 20m-EUR 30m available if the fund secures a co-investment, he said.

It expects to exit its portfolio companies after four to six years, he added.

Around 30% to 40% of Fund I’s deals are sourced internally, but Move Capital also works with financial advisors, including Rothschild, Lazard, GP Bullhound and You Are Capital, Malaussena said.

Established in Paris, Move Capital has eight employees.

[Editor's note: The text has been amended following a post-publication request to clarify that Move Capital is a pan-European growth equity fund.]

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