Flashpoint VC III

History

2022: Close $102 million levy to invest in European IT startups

In early August 2022, the British investment company Flashpoint Venture Capital, founded by Russian financiers, announced the raising of the full amount of funds planned for the Flashpoint VC III fund. It was possible to raise a total of $102 million with an expected $100 million.

Flashpoint Venture Capital also brought in Széchenyi Funds' first institutional partner. This Hungarian fund has invested $20 million in Flashpoint VC III. Széchenyi Funds usually focuses on financial institutions, large corporations and mature representatives of small and medium-sized businesses, but in some cases the fund provides to startups money through local incubators and accelerators, as well as investment funds, Flashpoint Venture Capital reported.

Flashpoint raised $102 million to invest in European IT startups

According to Desnes Jobbágy, CEO and President of Széchenyi Funds, the fund knows that talent and professional investments in developing countries in Europe are a very effective combination. This is especially true for subsequent years, when improving the efficiency of spending using information technology will become more important than ever, he added.

We are pleased to have achieved our initial goal of raising over $100 million in commitments for our VC III fund, despite the extremely challenging fundraising environment. As a Hungarian, I am especially proud that our first institutional investor is from Hungary, as we pursue a common mission to develop the venture capital ecosystem in Hungary and the Carpathian basin, "said Mikhail Solontai, co-founder and general partner of Flashpoint.

Flashpoint co-founder, general partner and managing partner of Flashpoint VC III Alexander Konoplasty added that the company has an individual strategy for investing in software developers in Western markets, where Flashpoint pays special attention to founders from developing countries in Europe and Israel.^[1]

2020: Launch of a fund to invest in cloud projects

On December 16, 2020, the venture capital firm Flashpoint, which was previously called Buran VC, announced the launch of the Flashpoint VC III fund to invest in cloud projects.

As Kommersant was told in Flashpoint, the target volume of the fund is $75-100 million, of which $50 million had been raised by the time of its launch. It is noted that Flashpoint VC III will focus on investments in startups whose activities are related to SaaS solutions (software as a service) and B2C products from such areas as entertainment, education, health care and finance.

Russian venture capital firm Flashpoint launches $100 million fund to invest in cloud services

Funds from the new fund are planned to be invested in 15 technology companies at Round A, part of the funds will be used to support promising projects of the sowing stage, said Alexander Konoplyasty, co-founder and general partner of Flashpoint .

The average check to the company will vary from $1 million to $4 million. In total, with a follow, the volume of investments in one startup can reach $15 million. The fund will invest in exchange for a share of 10-20% and a seat on the board of directors.

By mid-December 2020, Flashpoint had invested a total of 26 startups and made 66 subsequent investments in portfolio companies. The total value of assets under the management of Flashpoint (finances technology startups from Russia, Central and Eastern Europe, the Baltic countries and the CIS) is $350 million.

The foundation has developed its own methodology for finding and evaluating startups - automation of these processes is based on the experience of analyzing thousands of companies. In 2020, Flashpoint analyzed 1,500 companies.

In addition, Flashpoint has its own project analysis system that allows you to analyze technology startups by key indicators (financial data, growth dynamics, team, etc.).^[2]

Notes