Edoardo Ermotti, the founder of Swiss venture capital firm 14 Peaks Capital, has closed the firm’s inaugural fund with $30 million raised from family offices and high-net-worth individuals. With a focus on business-to-business software providers in the fintech and future of work verticals, Ermotti has intentionally recruited a tight circle of limited partners who bring relevant experience and contacts to the portfolio companies. The fund has already added 11 companies to the portfolio, including Rain, a US fintech company, and Threatfabric, a Dutch cybersecurity specialist, with both companies crediting 14Peaks for hands-on support in addition to financial investments.
Ermotti emphasizes the importance of investors providing more than just financial support to start-ups, with many founders valuing access to a curated hub of experienced and well-connected limited partners. Despite its small scale, 14Peaks has already led or co-led on three of the 11 investments made to date. With 30% of the fund reserved for potential follow-on investments, Ermotti expects to invest an average of $750,000 in 25 portfolio companies. Deal opportunities will be sourced from the firm’s network of contacts, founder referrals, and outbound activity.
The fund is looking to expand its presence in the US as it already has several American businesses in its portfolio. Ermotti believes having a team on the ground in the US will not only support these companies but also help European portfolio companies looking to expand into the American market. He sees the advantage of leveraging the strengths of 14Peaks’ limited pool of investors with relevant expertise to attract founders who value support from investors as much as the size of the investment. The fund’s focus on fintech and the future of work sectors aligns with the potential for disruption from technology in financial services and changing dynamics in the workplace.
14Peaks’ approach of providing hands-on and proactive support to portfolio companies has been well-received by founders, with both Rain and Threatfabric benefiting from the team’s strategic guidance and business development strategies. Ermotti believes the fund’s curated hub of experienced investors can provide founders with valuable networks and expertise, making 14Peaks an attractive option for start-ups seeking support beyond just financial backing. With plans for further growth and expansion, the fund aims to continue its hands-on approach and provide meaningful support to its portfolio companies looking to scale and succeed in the competitive business landscape.
