Add Row 
Add 
Founders Future Sets Sail for U.S. Ventures
In an exciting move to expand its reach, Founders Future, a French venture capital firm with a strong track record in the startup arena, has announced plans to establish a presence in the United States. With €300 million (~$324 million) in assets under management, the firm has recently sold a 25% stake in its holding company to notable investors, signaling its determination to grow its portfolio—and potentially change the course for many European startups seeking U.S. market entry.
The Road Ahead: Ambitious Goals by 2030
Founded in 2018, Founders Future aims to scale to an impressive €1 billion in assets by the end of the decade. This growth strategy has been catalyzed by the reopening of its capital structure, enabling the firm to attract investments that will support both European and American branches. Marc Menasé, founding partner, highlighted that the new influx of capital will directly fund the opening of two U.S. offices: one on the East Coast and another on the West Coast. The goal? To serve as a transatlantic bridge for innovative companies from Europe eyeing the vast American market.
Understanding the European to American Transition
Menasé noted that many startups emerging from Europe tend to double or even triple their annual recurring revenue (ARR) within 36 months of entering the U.S. market. This phenomenon, attributed to a more mature ecosystem and higher valuations found in the U.S., underscores the necessity for European firms to harness the opportunities available in America, especially regarding funding and acquisition potential.
Investing in Growth: Focus on U.S. Companies
As part of its U.S. expansion, Founders Future plans to instigate a growth fund to specifically focus on American tech firms. By facilitating investments in U.S. companies, the firm aims to provide its European limited partners with invaluable footholds in one of the world's most lucrative tech markets. This strategy highlights the importance of building dual pathways to ensure the mutual benefit of both regions.
Investment Strategy: Balancing Risk and Opportunity
While Founders Future is gearing towards ambitious investment sizes for growth rounds—between $5 million and $10 million—the firm also recognizes the volatility in tech financing. Minimized risks and strategic partnerships will form the backbone of its American venture. The firm has already caught the attention of its stakeholders, including MACSF and the Dassault family's group, likely suggesting they will have a stake in this new fund.
The Greater Impact of This Expansion
This transatlantic strategy is not merely about investment but forming meaningful connections with the U.S. tech ecosystem. As Menasé articulates, having a European VC on the capital table is not just an offering of funds; it is about navigating the complexities of the European tech landscape. It’s a robust proposition for American startups looking to scale operations across the Atlantic.
By adding a European dimension to their business strategy, U.S.-based firms could enhance their understanding of global markets, which has become imperative in today’s interconnected economy.
Conclusion: What Lies Ahead for Founders Future
As Founders Future strides towards a new chapter in its evolution, the implications of its U.S. expansion resonate strongly within the startup community. By planning to operate in both Europe and the U.S., the firm is not just reinforcing its market presence but also acting as a catalyst for fostering international collaboration and innovation among startups. For the tech entrepreneurs in both regions, the evolving narrative is one filled with potential opportunities and partnerships that could redefine the tech industry landscape.
Write A Comment