For a venture capital (VC) firm, the second fund represents a pivotal moment, often determining its success or failure. During the initial fund phase, funds are raised based on an investment thesis, lacking a proven track record or return on investment. However, when it comes to raising the second fund, the dynamics change.
Paris-based VC firm Singular, co-founded by Raffi Kamber and Jérémy Uzan, invested across Europe and shared two significant pieces of information. First, after securing €225 million for its initial fund, Singular successfully raised €400 million for its second fund. Second, all investors from the first fund returned as limited partners for the second fund, signaling positive investor confidence.
This success was not guaranteed, given the volatility in the venture capital landscape over the past few years. Following the investment surge in 2021 and early 2022, resulting in inflated valuations, the market experienced a significant correction.
Jérémy Uzan explained the firm’s strategic decision-making during this period, considering whether to engage or stay out amid the changing landscape. Singular chose to participate, consulting with its limited partners. In the current climate, where many startups are raising funds with flat or lower valuations than previous rounds, Singular maintained a positive outlook on its first fund’s financial performance.
Despite not disclosing specific metrics, Uzan emphasized that existing limited partners reinvested in the second fund. The frenzied pace of VC investments necessitated a quicker fundraising process for Singular’s second fund.
Singular’s investor base includes large entities such as pension funds, sovereign funds, and significant family offices, boasting at least $10 billion in assets under management and spanning global locations.
In contrast to some Paris-based VC firms focusing primarily on France, Singular adopted a pan-European approach from its inception. The firm aspires to establish itself as a tier 1 VC firm on a European scale, competing with well-known names like Index Ventures, Accel, and Atomico.
Uzan noted the scarcity of European VC firms with a generalist approach, mentioning Blossom Capital and Felix Capital as relatively recent examples. While approximately one-third of Singular’s portfolio companies are based in France, the majority operate across various European countries.
Singular typically invests in Series A rounds and beyond, emphasizing its ability to provide substantial funding when needed. The firm’s diverse portfolio spans industries, reflecting its opportunistic venture investment approach.
The guiding principle for Singular is to identify and support exceptional teams, believing that strong teams lead to projects with high potential. The firm aims to actively lead investment rounds, fostering close involvement with portfolio companies and their CEOs to maximize its impact and value.
