All Iron Ventures launches its first fund of vc funds focused on the European opportunity

All Iron Ventures (AIV) is announcing today the launch of its first fund of VC funds – named AIV Bilbao FDF I, FCR – totaling approximately 30 million euros. The new fund will primarily invest in established VC managers operating across stages, segments, and European regions. AIV aspires to provide a differentiated value proposition to the managers in which it invests, leveraging its operator and peer approach. With this new fund, AIV’s assets under management reach c. 140 million euros.

Industry insiders and preferential access

AIV has been an active VC in Europe since 2018, having so far invested in more than 50 startups alongside more than 140 international investors. As a result, the firm has developed an extensive investor network, which translates into an ability to access many of the leading industry players. Given the nature of VC – where the best returns tend to concentrate in the so-called top quartile funds – having preferential access to the best in the market is a relevant advantage.

Stemming from its own nature as a VC operator, AIV aims to provide a differentiated value proposition to the managers in which the fund of funds will invest. This includes, among others, sharing deal-flow, helping with the analysis of specific opportunities within AIV’s core expertise, putting AIV’s network at the disposal of the target funds’ portfolio companies, and helping further internationalize the investor base and gain greater access Spain, a country of increasing interest for VC.

Diego Recondo, partner and co-managing director of AIV, stated: “We are GPs ourselves and, as such, understand how the industry works and what we like to see in an LP. We aspire to build long-term relationships with the managers in which we invest and to provide them with meaningful value. In short, become one of those LPs that we would like to have as our own investors”

So far, the fund of funds has invested in eight funds from top-notch managers such as Hoxton, Left Lane Capital, Speedinvest, Crane and firstminute, among others.

Investment strategy

AIV’s fund of funds bets on the European tech opportunity. The more attractive valuations European startups enjoy across all stages vis-à-vis their US counterparts, paired up with European VC’s proven ability to generate more attractive returns than US VC, provide solid foundations for such an approach. The undeniable ongoing development of Europe’s ecosystem at all levels further supports such bet.

The new fund of funds will invest in approximately 15 funds, with a strong preference for established managers with solid track records and reputations. At least 75% of the capital will be used for investments in Europe, both in early and later stages. The fund will build exposure to Europe as a whole, including the main hubs and other emerging regions, and will invest in funds targeting both B2B and B2C segments in the ICT space.

The fund of funds is a 100% stand-alone product, running in parallel with AlV’s direct investment strategy and aligned with the non-leading role AIV usually takes when investing in startups. In this regard, to avoid any potential conflict of interest, this funds of funds will not carry out direct co-investments in portfolio companies of the funds in which it invests

Addressing a growing investor demand

The new fund of funds is backed by c. 80 investors, including both AIV’s existing LPs in its first fund and new ones. AIV has been so far trusted by more than 180 investors, including relevant family offices, internet entrepreneurs, and renowned professionals from diverse business sectors.

The new fund is the second vehicle AIV has launched to the market. In 2019 and 2020, AIV raised its first vehicle, a EUR66.5 million fund – the largest debut fund in Spain to date – focused on investing in seed and series A rounds of mainly Spaniard and European companies. This fund has so far invested in approximately 45 companies, including Spanish unicorns Jobandtalent and Paack and companies such as Preply, Seedtag, Lingokids and Uncapped.

"With the launch of this fund of funds we offer a complementary investment alternative to our investors in an asset class that is enjoying increasing interest in the Spanish developing tech ecosystem. It is also an additional step in our bold vision to become a leading VC in Europe in the long term”, said Ander Michelena, co-founding partner of AIV.

https://www.alliron.vc/fund-of-funds/