Geneva-based investment firm Giano Capital has just launched an exciting new secondary market fund supporting late-stage companies in the thriving European tech and digital landscape. Led by serial entrepreneur Alberto Chalon and media and tech executive Andreas Wiele, this €50 million fund aims to invest in up to fifteen promising European companies, with investment sizes ranging from €2 million to €25 million. Additionally, the fund plans to offer co-investment opportunities to its Limited Partners, maximizing returns for all involved.
To secure funding, companies must meet Giano Capital's stringent criteria, which include an exceptional founder team that has achieved a minimum revenue of €30 million, an annual growth rate of at least 30%, and a clear path to profitability and positive cash flow. Furthermore, these companies must be backed by top-tier investors and possess the financial runway to aim for an exit strategy within two to four years. These rigorous standards are crucial in allowing Giano Capital to limit the fund's lifespan to just five years, cutting in half the traditional 10-year fund timeline while targeting an impressive IRR of over 25%.
"The time-to-exit for startups has nearly doubled from 2010 to 2023. With rising interest rates and declining tech valuations, the current macroeconomic environment will only intensify the liquidity challenges faced by founders, business angels, and early-stage funds. However, this market presents an enticing opportunity for new investors to secure stakes in these high-potential companies at attractive valuations," explains Wiele. He further emphasizes that Giano Capital's establishment provides an exceptional solution, positioning the firm as one of the leading matchmakers in this dynamic market.
Giano Capital has wasted no time making its inaugural investment, choosing to back Finn, a pioneering car subscription company. Maximilian Wühr, co-founder and CEO of Finn, expresses enthusiasm for the partnership, noting the invaluable entrepreneurial expertise that Alberto and Andreas bring to the table. This strategic collaboration will propel Finn's future growth beyond the financial investment.
With its €50 million fund, Giano Capital aims to be a catalyst for the continued expansion of Europe's tech and digital sector. By identifying and supporting exceptional companies that meet their stringent criteria, Giano Capital is poised to contribute significantly to the success and advancement of the European tech ecosystem.