Cautious Optimism

European VCs Find Their Footing, Fuel Venture Goes Full Throttle for New Fund, and an AI Startup Tries Its Hand at Revolutionising Identify Verification.

Author

Adam from VC Brags
April 03, 2023

Welcome Shareholders,

In this daily edition of the Brags Newsletter, we'll cover how European VCs are bouncing back after a rough 2022, Fuel Ventures Looks to Ignite Tech Startups With its New Fund, and an AI trust and identity management startup raises money to secure the future.

So sit back, grab a snack, and enjoy!

Venture Today 👏

  • Despite a decline in European venture funding compared to last year, recent quarters suggest an optimistic outlook as the contraction appears to have stabilized.

In Q1 2023, European startups secured $28.85 billion through 2,274 deals, showing an increase in capital investment compared to Q3 and Q4 2022. Although not yet a definitive rebound, this positive trend offers an encouraging outlook for Europe's startup ecosystem.

In the first quarter of the year, the majority of European venture capital was predictably invested in startups from the UK, France, and Germany, which accounted for 1,362 deals worth $24.71 billion, or 85% of the region's total. While venture capital volume in these countries rose 33% quarter on quarter, it decreased 39% year on year, showcasing mixed results.

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Who's Raising?

  • Miami, Florida-based early-stage technology investor Fuel Venture Capital is looking to raise money for its next flagship fund.

Fuel Venture is looking to raise $300 million from institutional investors through the Fuel VC Note, a listed centrally cleared transferable note that can be sold and traded. The fund aims to support tech companies revolutionizing business and consumer experiences across various life aspects.

The fund is set to invest in seven warehouse companies previously backed by the venture firm, including Betr, RecargaPay, Soundtrack Your Brand, Curve, CookUnity, AEXLAB, and Novopayment.

Startup of the Day

  • Amsterdam startup Fourthline, which builds AI-based solutions to help with identity verification and help businesses comply with anti-money laundering rules, is raising $54 million in a round led by Finch Capital.

Founded in 2013, Fourthline spent five years developing its technology before commercially launching in 2018. The company has raised $76 million to date, including the $54 million recent raise. The company said that its business had grown 80% annually in the last five years, serving clients such as N26, Qonto, Trade Republic, FlatexDEGIRO, Scalable Capital, NN, Western Union, and marketplaces like Wish.

Fourthline's technology includes approximately 200 checks, such as ID document examination, biometric data parsing, residence record verification, and sanction list cross-referencing, among others. While some checks involve simple database queries, others are more intricate and dynamic. This funding round will bolster R&D resources to further enhance these complex processes.

Fresh Finds

  • Lago offers a comprehensive developer-first billing platform: usage-based metering, subscriptions, coupon management, credit notes, and custom plan creation.

  • Lago offers a user-friendly interface designed for business and finance teams to easily iterate on pricing.

  • Lago is adaptable to any pricing grid and seamlessly integrates with various tools like payment processors, CRM, and internal systems.

Memes and Other Things

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