HenQ, an Amsterdam-based VC that purchases European B2B software application startups normally at seed and Series A, just recently disclosed the first close of its fourth fund at EUR70 million. The final close is anticipated to top out at in between EUR75-EUR85 million later on this year, and the firm has actually currently started backing business out of the new fund.
What sets henQ apart from lots of VC companies isn’t just its pure focus on B2B software application however that its team is totally remote. Mainly purchasing the Nordics and Benelux, henQ does not have any official workplaces, with the team working from various temporary areas. Even prior to the coronavirus pandemic, henQ closed offers remotely.
Successes from its previous funds include Mendix(obtained by Siemens) and SEOshop (obtained by Lightspeed).
I spoke to partners Jan Andriessen, Mick Mackaay and Jelmer de Jong for more information about henQ, what it resembles to be a totally remote VC and how the company imagines the post-pandemic age.
TechCrunch: Can you be more specific regarding the size of check you compose and the types of business, geographies, innovations and service models you are focusing on?
Jan Andriessen: Our main focus is seed rounds, in which we typically are the lead financier. We also purchase Series A rounds, typically as a co-investor. Preliminary check sizes vary from EUR500,000 to EUR3.5 million.
A common seed investment has an item and maybe a couple of pilot consumers. The secret here is not income (which is OKAY to be zero), however there is proof of the real requirement for the item.
The majority of our recent offers were in the Nordics and Benelux, the areas where we spent the majority of our time. However we have also purchased the Baltics, Czech Republic and the UK. For henQ 4, we expect this to be the very same: the bulk of our financial investments will be in the Nordics and Benelux, with an occasional handle wider Europe.
In regards to technology and service trends, among the important things we firmly think in is the consumerization of business software: successful start-ups are focused around their customers and concentrate on the job to be done. More usually, we have actually constantly been concentrated on start-ups with remaining power: business that have a right to exist in time, not recently, as they deliver a product that touches the core procedures of their customers and run at the heart of their customer’s service.
Looking at our portfolio, Zivver delivers safe and secure interaction services for healthcare facilities and federal governments. Stravito works deep in the research study departments of FMCGs, providing a knowledge management platform. Mews runs the full operations of hotels with their home management system, and Orderchamp enables merchants to digitize their buying procedure.
We see business model of a company as a means, not an end. The majority of the start-ups we invest in charge a SaaS plus application cost, and have a more enterprise-sales driven service model. We are not afraid to purchase start-ups that have a more complex and longer sales cycle, and are not per se searching for SaaS ‘by-the-book.’
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.