A new London based venture capital firm launches today and has announced plans to invest over €50m (£44.8m) of capital in building a portfolio of more than 20 early stage technology companies.
Sova VC, part of the Sova group of companies, which includes FCA regulated Sova Capital, Sova VC’s strategy is centred on identifying high-potential, disruptive technology companies at Late Seed and Series A stages with a particular focus on B2B and B2B2C marketplaces and software platforms.
The Sova VC team claims expertise and interest in Urban Tech, Fintech and Healthcare, and its initial geographic focus will include partnering with growth stage companies in the UK, Nordics, Baltic States and the US East Coast.
Its first $2.5m (£1.9m) investment backs US-based cloud-based translation platform SmartCat.
Alexander Chikunov, Partner at Sova VC, said: “Typically, our partner companies will have developed a product, have a proven track record and are looking to accelerate their growth and development.
“In such cases an initial investment from us will typically be in the range of €0.5-1.5 million, growing to as much as €4 million in a single portfolio company.”
Chikunov has a track record spanning 10 years as a VC and corporate finance investor and has worked on a range of venture deals and exits involving companies such as Airsorted (Houst), Homewings, Hubble and SimplyCook.
Chikunov says Sova VC has already developed a strong pipeline and will announce further deals imminently.
“Smartcat is a great example of the type of company we like to partner with. It is a disruptive and highly innovative B2B marketplace with a great team, fantastic offering, and a compelling opportunity to grow within a very large but fragmented industry worth in excess of €50bn (£44.8bn) annually.”