Mangrove Capital Partners, the Luxembourg-based VC founded in 2000, announced the first close of its 5th fund at $170m. With cumulated AuM of roughly $ 1 billion, the firm expects the fund to close at $225m-$250m during the fall.
Mangrove’s strategy will remain well focused on start-ups, investing small tickets in early stage businesses in Europe but also in Israel where the team scouted Wix back in 2008 and which is, to date, the firm’s most profitable exit generating a $550 m value from an $ 8 m investment. Skype, exited to ebay in 2005 was, nonetheless, the deal that placed Mangrove in the international charter of VC firms.
Today Mangrove features 30 portfolio companies in its website ranging from electric taxis to church management software, mobile-based recruitment platform to instant messaging app. According to Hans Jürgen Schmitz, co-founder of Mangrove, “we will continue to invest as a generalist in transformational technologies targeting both end consumers and business customers. Next to this, we also identify specific focus areas which are currently digital health and cyber security”.
Mangrove’s consistency in its portfolio picks matches that of its investors. The new fund is funded almost exclusively by returning investors, “a mix that comprises institutional investors (70%) and family offices (30%)” notes Schmitz.
Mangrove is a patient VC encouraging its portfolio companies to strive for breakout success rather than quick turnaround. From the 30 active companies across their prior funds, they expect a few more of those successes materializing in the next couple of years.