TLDR:
- Forestay Capital has closed its second fund, Forestay II, for $220 million to invest in early-stage Enterprise AI and SaaS firms in Europe and Israel.
- The firm typically invests $10-15 million as the main investor in early growth rounds.
Forestay Capital announced the closure of its second fund, Forestay II, for $220 million to focus on investing in early-stage Enterprise AI and Software as a Service (SaaS) firms in Europe and Israel. The European venture capital firm often invests $10-15 million as the primary investor in early growth rounds. Forestay II has already formed partnerships with enterprise AI businesses such as Veriti, an Israeli cybersecurity solution, and Neural Concept, an engineering intelligence company.
Forestay Capital, launched as an enterprise technology fund of B-FLEXION, has attracted support from major European family offices, including a cooperation with Anaïs Ventures, an investment vehicle for members of the Firmenich family. Their investment strategy is focused on Enterprise AI and SaaS, seeking to transform sectors and lead investment rounds in firms that meet their standards. Forestay typically issues first tickets worth $10-15 million and conducts thorough, systematic due diligence to identify investment opportunities. The company aims to provide immediate benefits and leverage its sector and scaling experience for considerable growth within five years of investment.
The firm invests in startups that leverage AI and data through exclusive technologies, scalable business models, and strong management. Forestay has identified four key investing themes that include AI/ML infrastructure, data infrastructure, cybersecurity, and productivity/automation. Forestay Capital’s first fund, Forestay I, has a portfolio that includes successful companies like Wasabi, Nexthink, Scandit, and K2View, with three becoming unicorns and two being acquired at an average gross IRR of more than 50%.
