London-based venture capital firm Tapestry VC has closed its third fund at $80 million to invest in repeat founders across Europe and the US, nearly tripling the size of its previous $30 million vehicle.
- Founded in 2018 by Patrick Murphy, Tapestry VC invests at the pre-seed and seed stages, focusing on founders building their second or third companies. The firm plans to back around 30 startups with initial cheques ranging from $1 million to $3 million, while continuing its strategy of engaging with entrepreneurs before they formally launch a company.
- The new fund attracted commitments from the British Business Bank, which invested $40 million, alongside Molten Ventures, Railpen, and Sarah Friar, CFO of OpenAI, who also backed Tapestry's previous funds.
- According to the firm, repeat founders have created more than $2 trillion in enterprise value across Europe, with a new generation expected to emerge from upcoming AI startup exits. Tapestry believes these entrepreneurs benefit from stronger networks, greater operational experience, and an ability to scale teams more quickly than first-time founders.
- The firm's portfolio includes Nothing, Fin, acquired by Salesforce for $3.6 billion, as well as Manna Air Delivery, Sunrise Robotics, Tracebit, Maze, and Keycard.
- With the new capital, Tapestry VC aims to make around a dozen investments annually across software, AI, cybersecurity, fintech, autonomy, and deeptech startups while strengthening its presence in London after opening a new flagship office.
