London-based venture capital firm 20VC has achieved a significant milestone by closing its third fund, amassing over €360 million (approximately $400 million). This substantial raise not only highlights the firm’s robust investment strategy but also reinforces its position in the competitive venture capital landscape, particularly during a challenging fundraising environment for many firms.

Fund Structure and Strategy

20VC’s newly established fund consists of two major components: €114.7 million allocated for Seed investments and $252.3 million earmarked for Series A funding. This structure reflects a strategic approach aimed at supporting early-stage startups while facilitating their growth through subsequent funding rounds. The new fund represents a remarkable 2.5 times increase in size from 20VC's previous fund, which raised $140 million in June 2021.

The firm’s unique sub-fund model differentiates it from traditional venture capital structures. 20VC operates three distinct sub-funds: 20Sales, 20Growth, and 20Product. Each sub-fund is composed of highly experienced professionals who bring operational expertise rather than merely investment acumen. This innovative approach is designed to provide invaluable insights and support to portfolio companies, helping them navigate the complexities of scaling in today’s market.

Diverse Expertise Across Sub-funds

20Sales, an all-female team, consists of go-to-market leaders from influential tech companies such as Notion, OpenAI, and Vanta. This sub-fund focuses on enhancing sales strategies and driving revenue for the startups within the portfolio. 20Growth includes executives from high-growth companies like DoorDash, Dropbox, and Shopify, bringing essential insights into scaling operations and achieving sustainable growth. Finally, 20Product comprises veterans from product and technology sectors, with experience from firms such as LinkedIn, Nubank, Snapchat, and Spotify, ensuring that portfolio companies have access to top-tier product development expertise.

Building a Media Empire

In addition to its investment activities, 20VC has made a significant impact through its media platform. The firm has achieved over 150 million downloads of its content, with founder Harry Stebbings conducting more than 2,750 interviews with influential figures in the tech industry. High-profile guests have included Sam Altman from OpenAI, Salesforce's Marc Benioff, Daniel Ek from Spotify, and LinkedIn's Reid Hoffman. This media presence not only enhances 20VC's brand recognition but also positions it as a thought leader in the venture capital space.

Investor Confidence and Support

Key investors in the new fund include notable names such as MIT Investment Management Company, Horsley Bridge, and RIT Capital Partners, demonstrating strong confidence in 20VC's model and leadership. Harry Stebbings, the firm’s Founder and Managing Partner, expressed his gratitude for the backing, stating, “We are here to build a generational-defining firm. Raising $400 million from the caliber of investors that we have is a testament to their belief in us and to our model working. It’s time to put our heads down and work harder than ever.”

Prominent investors have echoed Stebbings' sentiment, highlighting the potential of 20VC’s innovative structure. Josh Kushner, Founder of Thrive Capital, praised Stebbings as an exceptional partner to entrepreneurs and a significant figure in the technology ecosystem. Ryan Akkina from MIT Investment Management Company emphasized the uniqueness of 20VC’s combination of media and investment strategies, stating, “Harry is building one of the highest potential next-generation venture brands, and we are thrilled to back 20VC.”

20VC’s successful closing of its third fund positions the firm for continued growth and influence within the venture capital landscape. With a differentiated approach that emphasizes operational expertise and media engagement, 20VC is well-equipped to support innovative startups and contribute to the evolving technology ecosystem. As the firm sets its sights on its next phase of growth, it aims to leverage its extensive network and resources to drive success for its portfolio companies, solidifying its reputation as a forward-thinking venture capital firm.