3TS Capital Partners, a European technology-focused growth capital investor, announces the first closing of its Fund IV with a target size of €150m. The firm’s prior multi-generation funds totaling over €300 million have made a strong, positive impact on the innovation and technology ecosystem development across Europe, by investing in over 50 companies out of which more than half have been successfully exited.
Fund IV commitments have come from a broad group of premier institutional investors including European Investment Fund (EIF), Erste Group, Tesi (Finnish Industry Investment), as well as several family offices and technology entrepreneurs. 3TS is proud for the continuous support of EIF and EIB, with financial backing from the European Union under the European Fund for Strategic Investments (“EFSI”). EFSI was set up by the Investment Plan for Europe. The purpose of EFSI is to help support financing and implementing productive investments in the European Union, as well as to ensure increased access to capital.
The new fund will continue 3TS’ mission of backing rapidly growing technology companies, across software, tech-enabled services, and e-commerce sectors, by leading investment rounds of €5-20 million. Since its start, 3TS has primarily focused on investing in companies from Engineering Europe, a region with long-standing, world-class technical strengths and increasing levels of experienced management. The diverse 3TS team, comprised of eight nationalities based in Europe and the US, is committed to be an active business partner to companies with breakthrough innovations and unbounded market opportunities.
3TS has an extensive track record of bringing strategic value to help exceptional entrepreneurs scale their businesses faster, broader with less risk. The firm has been instrumental in supporting current global challenger portfolio companies on their expansion, including Piano, Entelo, SalesManago, HomeCare.com, PerfectGym, EyeRim, and Safesize. Since the investment by 3TS advised funds, current portfolio companies have grown revenues by 250% on average, due in part to the firm’s know-how and deep networks across Europe and in the US. Notable exits of past 3TS portfolio companies include LogMeIn, H88, Systinet, Avangate, SolveDirect, as well as the most recent exit of Tresorit, which was acquired by Swiss Post in July 2021.
“We are very glad and thankful for the strong backing from existing and new investors in our Fund IV. Digital disruption and ever-increasing use of technology in all aspects of business and private life keep offering tremendous opportunities for innovative companies, especially in unprecedented times like the past 18 months. We look forward to supporting a new set of entrepreneurs building local leaders, regional champions and global challengers,” commented Pekka Mäki, Managing Partner of 3TS.
EIF Chief Executive Alain Godard added as follows: “We are pleased to be supporting this new 3TS Fund IV which will help tech companies across Europe to grow and innovate. 3TS is an established technology growth-stage VC firm in Central Europe and Eastern Europe and will contribute to technological and industrial innovation capital in the region. This new financing opportunity will provide an alternative funding source for companies as they face the economic consequences of the global pandemic.”
“We have tracked 3TS for many years and were impressed with the firm’s unique positioning in the market. 3TS has a vast understanding of the venture capital and growth investment market in Central Europe and Eastern Europe, and we believe this investment will aid us in diversifying our portfolio even further. We are glad to invest in Fund IV as a new limited partner and join 3TS in its journey,” complemented Petteri Laakso, Investment Director at Tesi.
