The European venture capital firm often invests $10 million to $15 million as a lead investor in early growth rounds. Its new fund, Forestay II, has already partnered with enterprise AI companies such as Israeli cybersecurity solution Veriti.
Forestay Capital announced Wednesday that it closed its second fund, Forestay II, on $220 million, which will invest in early-stage enterprise AI and software-as-a-service (SaaS) companies primarily in Europe and Israel.
Forestay often invests $10-15 million as a lead investor in early stage rounds. Forestay I’s portfolio includes Wasabi, Nexthink, Scandit, and K2View, three of which have become unicorns and two of which have been acquired with average gross margins of over 50%.
Forestay II already has partnerships with enterprise AI companies such as Israeli cybersecurity solutions firm Veriti and engineering intelligence company Neural Concept.
Forestay was formed as the Enterprise Technology Fund of B-FLEXION, the private entrepreneurial investment company of the Bertarelli family, which was responsible for growing Serono into the world’s third largest biotechnology company prior to its merger with Merck KGaA.
Forestay’s second fund has attracted backing from some of Europe’s leading family offices, including in collaboration with Anaïs Ventures, an investment vehicle for members of the Firmenich family.
The firm’s investment strategy is focused on enterprise AI and SaaS, which it believes have the potential to transform industries. Forestay invests in early stage startups (Series AC rounds) in Europe, Israel and the East Coast of the US.
The firm invests in startups that leverage AI and data through proprietary technology, scalable business models, and operational excellence. The firm has identified four key investment themes that could potentially benefit from this investment: Forestay’s services include AI/ML infrastructure, data infrastructure, cybersecurity, and productivity/automation.
Forestay is looking to lead investment rounds in companies that meet its investment criteria. The firm typically issues first-round investment tickets worth $10 million to $15 million and keeps a significant reserve fund for future investments, although exceptions are allowed when the circumstances are right.
We conduct thorough and systematic research and quickly draw conclusions on investment opportunities. We aim to deliver immediate benefits and leverage our sector and scaling experience to achieve significant growth within 5 years of investment.
