Isai closes second fund on €75m

After launching with a €70m hard-cap in early 2015, Isai Venture II held a €55m first close in April and was oversubscribed by late June. According to Isai CEO Jean-David Chamboredon, commitments were rejected from €75m onwards but investor appetite reached €100m.

The fund, the latest to join a recent wave of dedicated early-stage vehicles in France, is double the size of its predecessor and Isai's maiden fund Isai Développement, which closed on €35m in October 2010.

Chamboredon attributed the fundraising boost to a mentality shift among French corporates and policy-makers around the startup scene. According to him, the scepticism received by the VC for its first fund in 2010 has since been replaced by a growing awareness of France's internet industry's potential.

Investors
During its six-month fundraising process, Isai Venture II prioritised individual investors: 65% of all commitments came from around 100 entrepreneurs, while institutional backers and corporates provided the remaining 35%.

According to Chamboredon, efforts have been made to enlist US-based entrepreneurs in order to speed up the overseas expansion of French startups. The group, currently comprising 20 individuals, could soon be enlarged as Isai has set aside a minor share of the commitments for new entrants.

Investments
Isai Venture II will split its capital between core and seed investments. For the former category, the fund will stick to its predecessor's strategy and target three or four €750,000-2m post-seed injections in French startups each year.

For its deals, the VC will approach its LP base and invest alongside them via the Isai Seed Club scheme; Isai's contribution will cover up to a 25% of the ticket size for these deals, unquote" understands.

According to Chamboredon, the intention is for Isai Venture II to back 15 startups via core investments and a further 15-20 via the seed scheme, which could lead to a total of 30-40 portfolio companies across its lifespan.

To date, the fund has deployed 5-10% of its capital via two core deals and three seed investments. There are plans to add at least two new transactions before year-end; the first will be announced next week, while the second will be delayed pending a name change for the backed company.

People
Jean-David Chamboredon heads Isai's investment team alongside managing director Christophe Raynaud.

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