FEBE Ventures‘ The name stands for “for entrepreneurs of entrepreneurs,” and true to form, it continues to support seed-stage startups to launch a second fund. Targeting $75 million, Fund II is 2.5 times larger than FEBE’s first fund and is 90% committed. As part of the launch, FEBE Ventures also announced a co-investment partnership with Tekton Ventures.
FEBE Ventures was founded in 2019 by managing partner Olivier Raussin. To date, FEBE Ventures has backed more than 200 companies, including Local, Zenyum, Tindle, Silverbird and Manatal. New members of its leadership team include Nicolas El Baze, who is a general partner at Partech and has also founded several startups, including Microsoft-acquired Softway Systems; tech entrepreneur and angel investor Aditya Pendyala; and Tekton Ventures managing partner Jai Choi.
Fund II’s anchor investor is Otium Capital, an international family office founded by Pierre-Edouard Stérin, a serial entrepreneur whose startups include Smartbox Group. Otium Capital, which also backed FEBE Ventures’ first fund, manages $1.4 billion in AUM across 100 investments and has seen more than 25% IRR since its inception.
While FEBE Ventures’ first fund focused on Southeast Asia, the second fund’s broad investment thesis is pre-seed and seed-stage companies in different geographies and sectors.
“We love B2B, but we also love healthcare. We love sustainability and climate technology,” Raussin told TechCrunch. “But we’re people-driven, founder-centered and founder-driven. We always consider that the founders know best, so we surprise them and we are happy to discover new industries and new themes. Its average check size is about $250,000.
FEBE II will still invest heavily in Southeast Asia, Raussin said, but one of the reasons it is taking a more global approach is because of new collaborations that are expanding its network around the world.
Febe Ventures’ new partner Tekton Ventures is the San Francisco-based tech investment arm of Partech founder Vincent Worms’ family office. Choi led its investment in unicorns in various countries, including Coupang, Toss, Merman, Newports, Flutterwave and Signifyd. The partnership will enable FEBE Ventures and Tekton Ventures to share their networks in Southeast Asia, Silicon Valley, Latin America and Europe and invest in many companies around the world, especially in emerging economies.
The partnership will see Choi and El Baze take on roles as partner and venture partner, respectively, at FEBE Ventures.
All four members of FEBE Ventures’ leadership team are former entrepreneurs who, between them, have launched several companies and worked as investors around the world, Raussin said. In supporting startups, they are looking for the kind of services and products they dreamed of when they started their companies.
That also influenced the way they interacted with the founders, he added. “We try to be frank and real and share with a lot of humility the mistakes we made in the past so they can save time. We also have a mindset to build sustainable businesses that generate EBITDA and profit in the long run.
FEBE Ventures and Tekton Ventures decided to work together because both have global investment theses. “We are very geographically complementary and that’s why we decided to create these exclusive and long-term partnerships to work with the co-investment scheme,” said Raussin. “We will share our deal flow and invest together.”
In terms of the collaboration of FEBE Ventures with Otium Capital, Raussin said, “(Stérin) reached $1.4 billion starting from nothing, so he is also an entrepreneur. We have the same human qualities and the same business mindset, and we work well together.