Paris-primarily based VC agency Daphni is announcing its inaugural fund for seed and collection A investments. The team will handle a $ 165 million fund (€150 million) and take a look at some new issues on the subject of project capital in Europe.
On paper, Daphni seems like many different money. A bunch of limited partners have given an enormous pile of cash in order that a crew of tech-savvy people can make investments everything in startups. but Daphni desires to work a bit of otherwise with each startups and LPs.
For each and every investment, Daphni’s LPs will give you the option to co-make investments with Daphni preserving the lead in the case of board seats, carried passion, and so on. but the trick is that a Daphni LP like Société Générale doesn’t need to pay any administration charge for its personal investments (clearly).
So let’s figure out the pros and cons of a method like this one. For the LPs, the professionals are relatively simple. It’s an effective discount on management fees if they benefit from this chance. It’s a way to access part of Daphni’s deal flow and show your team in terms of startups. It’s a way of claiming that you love startups. And if you are making the precise investment decisions, it’s a strategy to financially overexpose yourself to a hit startups.
The cons are that you simply don’t actually have a say with regards to board decisions because Daphni doesn’t want too many cooks within the kitchen. As an LP, your investments are capped in accordance with the full quantity you place in Daphni’s fund. as an example, if Nokia invested $ 10 million in Daphni (I don’t recognize the precise amount), they can handiest co-make investments $ 10 million in total with Daphni.
As for startups, there may be one giant pro and one giant con. the big professional is you could get more cash more speedy, ending up raising more easily. the big con is that it’s a must to watch out relating to sharing information with Daphni’s LPs.
On Daphni’s platform, that you can make a selection to not share some data with particular LPs since you suppose they may compete with you otherwise you don’t want them to know the rest about your enterprise. This opt-out feature will be key.
talking concerning the platform, like different VC companies, Daphni has developed its own deal waft management platform. this manner, corporations can follow on Daphni’s web site, LPs can decide to co-invest on the identical platform, and Daphni doesn’t have to explicitly send emails to LPs for each funding chance.
Daphni has been co-based by Marie Ekeland, Willy Braun, Mathieu Daix, Pierre-Yves Meerschman and Pierre-Eri Leibovici. the everyday Daphni funding will sit anywhere between €300,000 and €3 million. LPs embrace tremendous industry angels and large firms, comparable to Bpifrance, Crédit Mutuel Arkéa, Société Générale, Fnac-Darty, Nokia, SWEN Capital companions, ProBTP, MAIF, many trade angels and more. The group additionally needs to host tech situations and desires to enhance a content material strategy.
And that’s about all there’s to learn about Daphni for now. clearly, the portfolio and the observe report can be extra necessary than anything, however we’ll have to wait on this front. Named after one of Caribou‘s stage names, Daphni needs to try new things with a brand new LP-VC relationship with some strict principles, a platform for entrepreneurs, VCs and LPs and a colorful branding. In other phrases: welcome Daphni.