LocalGlobe becomes Phoenix Court Group, hits $500M first close for new funds, adds an Impact twist – TechCrunch

Saul Klein is a busy man. As a co-founder, along with his father Robin, of LocalGlobeOne of the longest-running VCs in Europe, he has overseen a variety of initiatives – including being passionate investors and philanthropists at LocalGlobe’s Somers Town, London HQ – as well as the more conventional business of venture investing in startups.

But while the LocalGlobe brand name and fund will remain, the new umbrella brand for all of the Kleins’ activities from now on is “Phoenix Court Group(I will refer to it as PCG for the purposes of this article). The group also reveals how its four new funds will work and how it will donate 10 percent of its profits to a charitable foundation.

The company has now detailed how it will have $500 million at “first closing,” which it will distribute across its funds: LocalGlobe (early stage), Latitude (early “growth” stage), and two all-new investment vehicles , Solar and Basecamp.

A whopping 10 percent of Phoenix Court Group profits go to the Phoenix Court Works Foundation to help local groups in Somers Town.

Klein is also pushing the idea that PCG’s location in King’s Cross, London puts it in the heart of a European region he’s calling “the next Palo Alto” — more on that later.

So first to the fund structures. TechCrunch scoured marketing fans to find these definitions of PCG funds:

• LocalGlobe (Seed to Series A)

• Latitude (Series B and higher)

• Solar (Series C and beyond, plus investments in public technology stocks/public markets)

• Basecamp (LP fund to invest in other smaller VCs, Angels and Solo GPs)

With this range of fund vehicles, PCG becomes a “lifestage” tech investor, able to invest from the earliest stages of startup through to the latest stage and the public markets. It’s now also an LP in other funds (via Basecamp), particularly in emerging markets like Africa and Latin America.

But zoom out for a moment, and Basecamp is effectively the retrofitted moniker PCG gives to the various initiatives the Kleins have supported, including Seedcamp in 2007, company builder in 2017, and music industry platform Platoon, among others. Basecamp also works with diversity-minded people Newton Venture program, which LocalGlobe founded together with the London Business School. Pheonic Court Works has awarded 60 grants to this program.

PCG is now also arguing that the region is within a four-hour train journey of its base in Kings Cross and St Pancras (which includes Paris, Amsterdam, Brussels, northern UK cities (Manchester, Leeds, Liverpool, Newcastle)), Bristol, Oxford and Cambridge ) is home to over 40 million residents, 7 of the top 30 universities in the world and is home to a large number of Europe’s unicorns. It plausibly calls this region of Europe a “New Palo Alto” – despite the marketing sham being overly elaborate. Furthermore, PCG hardly has a monopoly on this region – whatever you call it – since every other London VC has access to the exact same ecosystem a tube ride from Kings Cross.

However, Saul Klein, co-founder of Phoenix Court Group, said in a statement: “Although this region is the third-best producer of high-growth private companies globally, this region is still underserved by investors, particularly in the breakout and scale-up phases. Not only is there an acute financing gap in the scale-up phase, less than 20% of the capital invested in this phase comes from within Germany. So if companies in our region are acquired or go public markets, UK retirees and savers will miss out while their Canadian, Australian and Singaporean equivalents will benefit.”

PCG will also support Phoenix Court Works, his foundation, which supports organizations in Somers Town, north London, and more generally in Camden, and will be funded 10% from the profits of the Phoenix Court Group management company and 2% from the carry from all funds.

Dealroom’s recently released VC Prominence Rank mostly showed Accel from the US with 24 unicorns and Sequoia with 20, while LocalGlobe invested mostly in Europe and uncovered 18 unicorns in the seed stage. LocalGlobe’s unicorns include At-Bay, Hailo, Motorway, Travelperk, and Zego.

During a phone call, Klein spoke to me about the plethora of these financing vehicles: “If you look at the companies that are going to be really big, not only are they going to be very big in the private markets, they’re going to be very big in the public markets as well.”

“We all think of Sequoia having this fund that can invest in both private and public companies that has been in the works for 15 years. So if you have the opportunity to get into seed-stage companies, why wouldn’t you want to continue investing in breakouts like Latitude three to four years before those companies can go public? We had eight IPOs last year, why wouldn’t you want to invest again? This is solar. If these are great companies that have a long way to go, stay tuned. Right? We now have full lifecycle financing for businesses.”

But what Klein finally seems to achieve, even with the fairly forced “the new Palo Alto” ​​stuff, is that he wants to do VC different as perceived in the past. After all, there just aren’t many other VCs (at least the ones I know of lately) that offer this wide range of hardcore investing and take an interest in their surroundings and Invest 10% of profits and 2% of carry into philanthropic activities. It’s clear that PCG would like to build a “new kind of Bay Area,” but this time with less “Tech Bros” and more “Tech Values.”

LocalGlobe becomes Phoenix Court Group, hits $500M first close for new funds, adds an Impact twist – TechCrunch Source link LocalGlobe becomes Phoenix Court Group, hits $500M first close for new funds, adds an Impact twist – TechCrunch

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