Forestay Capital Secures $220 Million for AI and SaaS Startup Investments in Europe and Israel

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The European venture capital firm often invests $10-15 million as the primary investor in early growth rounds. Forestay II, the new fund, has already formed partnerships with enterprise AI businesses such as Veriti, an Israeli cybersecurity solution.

Forestay Capital said on Wednesday that it had closed its second fund, Forestay II, for $220 million. Forestay II will invest in early-stage Enterprise AI and Software as a Service (SaaS) firms, mainly in Europe and Israel.

Forestay often spends $10-15 million as the main investor in early-stage rounds. Forestay I’s portfolio includes Wasabi, Nexthink, Scandit, and K2View, three of which have become unicorns and two have been bought at an average gross IRR of more than 50%.

Forestay II has already collaborated with enterprise AI firms including Veriti, an Israeli cybersecurity solution, and Neural Concept, an engineering intelligence company.

Forestay was launched as an enterprise technology fund of B-FLEXION, the Bertarelli family’s private entrepreneurial investment firm, which was responsible for growing Serono into the world’s third-largest biotech company before merging with Merck KGaA.

Forestay’s second fund has attracted support from major European family offices, including a cooperation with Anaïs Ventures, an investment vehicle for members of the Firmenich family.

Its investment strategy is focused on Enterprise AI and SaaS, which it believes have the potential to transform sectors. Forestay invests in early-stage startups (Series A-C rounds) in Europe, Israel, and the US east coast.

It invests in startups that leverage AI and data through exclusive technologies, scalable business models, and great management. The business has identified four key investing themes that potentially benefit from this: Forestay services include AI/ML infrastructure, data infrastructure, cybersecurity, and productivity/automation.

Forestay wants to lead investment rounds in firms that satisfy its investing standards. The company typically issues first tickets worth $10-15 million and maintains considerable reserves for future investments. However, exceptions can be made if the circumstances are proper.

It conducts thorough, systematic due research and rapidly comes to a conclusion on investment opportunities. The company aims to provide immediate benefit and leverage its sector and scaling experience to achieve considerable growth within five years of investment.