Multiple Capital Company Profile

Background

Multiple Capital, established in 2018 and headquartered in Bertrange, Luxembourg, is a fund of funds investment firm specializing in venture capital. The firm focuses on micro and seed-stage technology companies across Europe and the United States. Its mission is to democratize access to the venture capital asset class by providing diversified exposure to early-stage startups through investments in multiple micro venture capital funds. This approach aims to mitigate risk and enhance returns for investors.

Key Strategic Focus

Multiple Capital's strategic focus centers on investing in early-stage and micro venture capital funds, encompassing both local generalists and specialists in emerging sectors. By allocating capital to up to 30 micro VC funds across Europe and the US, the firm gains indirect exposure to a broad spectrum of over 500 leading early-stage ventures. This diversified investment strategy is designed to optimize the risk-return profile, leveraging the potential of small funds with less than $100 million in assets under management that concentrate exclusively on the seed-stage market.

Financials and Funding

In October 2021, Multiple Capital successfully closed its €20 million Multiple Fund II, marking the first time the firm opened its fund to external investors. This fund aims to scale the firm's investment model, providing new investors the opportunity to participate in a diversified portfolio of promising micro venture capital funds. The capital raised is intended to be allocated across up to 30 micro VC funds, thereby expanding the firm's reach and impact within the venture capital ecosystem.

Pipeline Development

Multiple Capital's investment pipeline is robust, with commitments in over 30 venture capital funds, resulting in an indirect portfolio of more than 700 companies. This extensive network includes one decacorn, ten unicorns, and over 50 outliers valued at more than $100 million. The firm's disciplined investment approach and strategic fund selection have positioned it to achieve top-decile performance within the fund of funds and venture capital industry benchmarks.

Technological Platform and Innovation

While Multiple Capital does not directly develop proprietary technologies, its innovative investment model sets it apart in the venture capital industry. By focusing on early-stage and micro funds, the firm capitalizes on the superior performance potential of small, seed-stage-focused venture capital funds. This model allows for broad diversification and access to unique investment opportunities, effectively reducing risk and enhancing potential returns for investors.

Leadership Team

Ertan Can: Founding and Managing Partner. Ertan established Multiple Capital in 2018, spinning it out from its former family office umbrella. He has been instrumental in developing the firm's investment strategy and expanding its portfolio.

Michael Jackson: Venture Partner. Michael joined Multiple Capital officially in 2021 after serving as an unofficial advisor for two years. With over a decade of experience in the European venture capital ecosystem, he brings valuable insights and an American entrepreneurial mindset to the firm.

Andreas Schmidt: Principal. Andreas plays a key role in managing the firm's investment activities and maintaining relationships with portfolio funds.

Leadership Changes

In October 2021, Michael Jackson transitioned from an unofficial advisor to an official Venture Partner at Multiple Capital. His extensive experience in the European venture capital landscape is expected to further strengthen the firm's strategic initiatives and investment decisions.

Competitor Profile

Market Insights and Dynamics

The venture capital fund of funds market is characterized by a growing interest in diversified investment strategies that mitigate risk while providing exposure to high-growth startups. Investors are increasingly seeking access to early-stage ventures through fund of funds structures, which offer broad diversification and professional management. The market is competitive, with several firms offering similar investment vehicles, each striving to differentiate through unique strategies and value propositions.

Competitor Analysis

Key competitors in the venture capital fund of funds space include:

AlpInvest Partners: A global private equity asset manager with a diversified investment approach, including primary fund commitments, secondary investments, and co-investments.

HarbourVest Partners: An independent, global private markets investment specialist offering a range of investment solutions, including fund of funds, secondary investments, and direct co-investments.

Pantheon Ventures: A global private equity, infrastructure, and real assets investor, providing fund of funds, secondary investments, and co-investment opportunities.

These competitors focus on providing diversified exposure to private markets through various investment strategies, including fund of funds structures.

Strategic Collaborations and Partnerships

Multiple Capital has established strategic collaborations with numerous micro venture capital funds across Europe and the US. By investing in up to 30 micro VC funds, the firm gains indirect exposure to a vast array of early-stage ventures, enhancing its market position and innovation capacity. These partnerships enable Multiple Capital to access unique investment opportunities and support the growth of emerging startups.

Operational Insights

Multiple Capital's strategic considerations include:

Diversified Investment Strategy: By investing in a broad range of micro VC funds, the firm reduces risk and increases the potential for high returns.

Focus on Early-Stage Ventures: Concentrating on seed-stage investments allows the firm to capitalize on the growth potential of emerging startups.

Scalable Model: The fund of funds model employed by Multiple Capital can scale effectively, accommodating increased capital without compromising the core investment thesis.