This European VC wants to invest £75M in software startups from Central & Eastern Europe, Israel, Baltics, Finland and CIS

Flashpoint Venture Capital Image credits: Flashpoint Venture Capital

Many believe that technology companies across the world have great potential to drive future business transformation and long-term value. And Flashpoint Venture Capital is one among them. 

Against all odds, the year 2020 has been a record year of investments in the tech space. According to a report by Atomico, European VC is standing on its own feet, continuing its outperformance versus other key indices, and reducing its dependence on government agency funding.

Now another leading international technology investment firm with its roots from Budapest, that specifically backs companies founded by management teams in Central and Eastern Europe, Israel, the Baltics, Finland and the CIS, has now announced the 1st close of its third VC fund targeting $100 million (£75 million approximately).

The talk is about Flashpoint Ventures Capital which has offices in Budapest, London, Riga, Tel Aviv, and Warsaw. It has now been rebranded as an international technology investment firm that manages equity and debt funds with $350 million (approx £260 million) Assets under Management.  

First close of third VC fund

Recently, the VC firm announced the first close of a third VC fund targeting $75-100 million (approx £56-75 million). Launched in 2012 by co-founders and General Partners Alexander Konoplyasty and Michael Szalontay, Flashpoint Venture Capital invests in software companies focused on B2B/B2C SaaS solutions providing venture capital at Series A stage, venture debt at series B/C stage, and growth stage secondary capital. The VC firm has supported companies like  Guesty, Dostavista, ivi, ChiliPiper and AllRight in their recent rounds.

At the same time companies originating benefit from having technical and products teams operating in highly skilled but significantly lower cost markets than their Western European and US competitors.

Made investment in 26 tech businesses

To date, the company has made investments in 26 tech businesses with 66 follow-ons and exited eight companies – most notably Shazam to Apple and chess.com to PokerStars founder Mark Scheinberg in 2018.

The team takes an extra data-driven approach to investment sourcing, selection, and analysis, which is driven by proprietary developed technology and AI. 

70 investors on board

The Flashpoint platform comprising venture capital, venture debt, and secondary products today has over 70 investors, made up of large family offices, High Net Worth individuals, and institutions. 

A large number of existing investors in Venture Capital Funds I & II, as well as Venture Debt Fund I, have also invested in Fund III.

Flashpoint co-founder and General Partner Alexander Konoplyasty, said, “Fund III will continue our strategy of targeting around 15 investments at Series A, whilst holding a large percentage for follow-on support, as well as allocating some capital to Seed round investments, which will concentrate predominantly on B2B companies with SaaS business models. In addition, a smaller allocation will be available for exciting B2C projects in large sectors such as entertainment, education, healthcare, and fintech.”

Flashpoint co-founder and General Partner Michael Szalontay, said, “What makes us different is that we view ourselves as principals first and foremost, similar to our entrepreneur partners in our portfolio companies. We strive to be the largest investor in our own funds in order to be aligned both with our Limited Partners and the founders we back. Our investment decision making is built on deep local knowledge, proprietary sourcing and evaluation technologies, a methodology that we applied to over 1,500 companies this year, enabling us to uncover and invest in some of the most promising companies across Europe and Israel.”