Revo Capital nears final close for Fund II

Erdinc Ergenc
01 September 2021

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Revo Capital, a Netherlands-based venture capital firm, is expecting the imminent final close of its second fund and eyeing two more investments in September, according to managing director Cenk Bayrakdar.

Revo Capital Fund II is oversubscribed, Bayrakdar said, adding that there have been five investments from the fund so far: CY Vision, Massive Bio, Builder.ai, Getir and Akinon.

"We plan to invest in two more Turkey-founded startups in September and bring the total number of investments from Fund II to 25 by the end of 2024," Bayrakdar noted.

Fund II will continue Revo's strategy of providing capital and support to fast-growing software and tech-enabled startups from Turkey, eastern Europe and the Baltic region, Bayrakdar said.

The fund held a first close on EUR 40m towards a target of EUR 60m in March 2020, as reported by Unquote. It has a hard-cap of EUR 90m.

At the time, Bayrakdar said he expected the fund to hold a final close within 18 months of first close: "We started our fundraising process in Q1 2019 and had already secured most of our commitments by Q4 2019," he told Unquote at the time.

Domiciled in the Netherlands and structured as a BV, the fund has a 2% management fee with a carry rate of 20% and a hurdle in accordance with market standards. The fund has a lifespan of 10 years.

Revo Capital Fund II's investors include the European Investment Fund, the European Bank for Reconstruction & Development (EBRD) and International Finance Corporation (IFC). EBRD and IFC were also the inaugural investors in Revo Capital Fund I, which closed on $66m in 2016. Other investors in Fund II include Yıldız Ventures, QNB Finansbank, EnerjiSA Enerji and Finberg.

The fund will invest in early-stage technology companies, particularly those developing cloud-based enterprise software, financial technology, digital market places, big data products, artificial intelligence products and technologies for the healthcare sector.

Typical equity cheques from the fund will be EUR 1m-4m and Bayrakdar expects to hold companies for around seven years.

Six exits from Fund I
Revo recently finalised its exit from portfolio company Logiwa WMS, a US-based retail tech startup, to Spider Capital and Valor Equity Partners, Bayrakdar said. This marked the sixth exit from Fund I, which has made 20 investments overall.

Its portfolio company Foriba, a regulatory technology startup, was acquired by global tax software company Sovos in 2019. Mikro Zirve, a software group backed by Turkish PE firm Turkven, acquired Revo's micro accounting platform Parasut that same year. Peoplise, a human resources software company, was acquired by Logo Yazilim in April 2020. More recently, Revo scored two further exits with Logiwa, and Latvian sound technology specialist Sonarworks.

Fund I is eyeing "top returns" and is performing "well above industry averages", Bayrakdar claimed. "Our recent exits positioned us among the top 10% of funds with the same vintage as Fund I, in terms of DPI," he added, without elaborating further on details.