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Quote of the day: It’s never been more challenging to be a solo GP, yet I can't imagine a better time to build one" — Maria Rotilu, Founder and Solo GP at OpenSeed VC.
Join us for the upcoming Lunch & Learn session on April 4th at 13:00 CET (online) as we explore Mergers and Acquisitions (M&A).
Europe’s Solo GP Surge in 2024
In 2024, over 28 solo-led funds operated across the continent - a four-fold increase since 2020. This surge reflects founder demand for nimble capital, solo GPs like Robin Capital (€15M B2B SaaS fund) deploy capital in weeks, not months, like traditional VC.
This trend mirrors the past of Silicon Valley’s solo GP boom, with a key distinction in fund size. The average solo GP fund size in 🇪🇺 🇬🇧 Europe stands at approximately €18.7M - substantially smaller than the 🇺🇸 U.S. average of $45M. Notable exceptions in fund size include Harry Stebbings’ $140M dual funds, now large enough to have brought in other partners and slowly exiting the “solo” phase.
Quantifying the Solo GP Trend
Solo GPs now anchor 27% of these critical early rounds, up from 12% in 2021.
This surge is happening, in a context where pre-seed funding is starting to follow a troubling trend: a steep decline in early stage investments.
Even though the pre-seed market might seem hotter by the minute, the numbers tell a different story: total pre-seed funding has plummeted from $4.86 billion across over 12,000 deals in 2019 to just $1.27 billion across fewer than 2,500 deals in 2023.
This trend highlights a growing concentration of capital, where only a small fraction of companies secure the majority of funding, leaving many others struggling to secure the funding they need.
As a result, the shrinking pool of early-stage capital is set to have a ripple effect, leading to fewer Seed and Series A–ready companies emerging in Europe in the coming years.
👉 This landscape is the perfect playing field for solo GPs. They bring a wealth of expertise, networks, and a hands-on approach that is vital during the early stages of startup development, while leveraging the funding gap to join great cap tables.
Their ability to bridge the funding gap and secure strong positions on promising cap tables has not gone unnoticed.
"I genuinely believe that this is the moment of solo GPs, where we’re being welcomed into the market. Founders love having exited founders as their investors." — Rupa Popat, Founder and Solo GP, of Araya for Sifted.
Rupa also emphasized her drive to back innovative founders in her words for European Women in VC:
“My motivation is the founders that we back. Their innovation, their disruptive ideas and vision. It’s a privilege to be a small part of their journey and if requested, and value to them across funding, network, scaling, talent, and/or growth strategies.”
Rupa's success is part of a growing trend where solo GPs are gaining traction in the VC space. Institutions like British Business Bank are opening doors to these emerging investors. This shift reflects a broader recognition of the value that solo GPs bring, particularly in terms of speed, and their ability to foster innovation in underserved markets.
“I’m incredible proud and humbled to be backed by British Business Investments, a subsidiary of British Business Bank as their first ever solo GP commitment.”
Key facts
✅ Solo GP-led VC funds are on the rise – they now account for 53.4% of all emerging VC funds launched in 2024.
✅ Fund Sizes (Average/Median): Most solo GPs run very small “micro” funds. About 67% of new VC funds in 2024 targeted under $10 million in size (down slightly from 71% in 2023).
✅ LP Composition: Support for solo GPs skews toward individuals and family offices. Although, some top solo funds have attracted institutional LPs (e.g. university endowments and fund-of-funds).
✅ Fundraising Scene: The fundraising environment has tightened for new and solo GPs. Emerging managers (first-time funds, many of them being solo GPs) raised only ~20% of total VC capital in 2023, a steep drop from ~50% in 2017.
The Performance Paradox
Solo GPs are adding a unique advantage to the startup ecosystem, leveraging agility and network to attract founders seeking partners who can execute quickly and offer high-value advice on the spot. In fact, the top 7 of 20 highest-performing external co-investors on AngelList were solo capitalists, demonstrating their deal quality despite smaller fund sizes. Only time will tell their capability to outperform the big industry leaders!
⚡Interesting note: Hybrid models are emerging to amplify impact. Hypernova, a €25M fund-of-funds, allocates 40% to solo GP funds and 60% to direct co-investments, creating a “capital stack” that combines grassroots sourcing with growth-stage firepower.
However, the solo GP model encounters relevant drawbacks that require “founder mode” expertise to navigate.
In Europe, first-time fund closes dropped by 50% in two years (66 in 2022 to 34 in 2024), with emerging managers securing just 20% of total VC capital in 2023 versus ~50% in 2017.
Fundraising timelines are increasing substantially: the average time to final close is 15 months, and one solo GP spent 24 months raising a $12.5M fund, engaging 1,200 LPs for a 5% conversion rate.
This difficulty to emerge is mainly due to the general risk aversion we are witnessing in the market. If we represent LP Risk Aversion in a graph, we see what has happened this past year in the North-American market:
🇺🇸 9 US mega-funds (e.g., a16z, General Catalyst) captured more than 50% of 2024 VC capital, crowding out smaller players.
Deal-by-deal (DBD) investing is gaining traction as an alternative to traditional fundraising, with platforms like Odin facilitating over 3,000 investments in 2024. This model allows solo GPs to bypass fundraises while maintaining portfolio flexibility. It is not perfect, but a nice alternative to invest “solo” for the first time.
Female Solo GPs are Breaking Barriers
There are independent female GPs whose success resonates loudly, however AUM disparities keep underscoring deeper inequities. While women manage 16% of European VC funds by count, they control just 9% of total capital - a €14.3B gap relative to male peers.
This stems from:
Smaller Fund Sizes: The average female-led solo GP fund totals €18.2M versus €24.5M for male-led peers. Even breakout funds like Araya Ventures’ £20M vehicle are somewhat smaller than sector leaders like 14Peaks Capital’s $30M pool.
LP Composition: Only 12% of institutional LPs have formal mandates to back female GPs, forcing women to rely on high-net-worth individuals (45% of their LP bases) versus male GPs’ 32%, with typically less ticket capacity.
As the venture model evolves - bolstered by AI-driven efficiencies and niche branding - solo GPs are set to redefine the industry's future. In the words of Maria Rotilu, Founder and Solo GP at OpenSeed VC:
"Solo GPs, once a rarity, will become a more mainstream force in early-stage venture. As the model evolves, we’ll see new and reimagined approaches emerge, shaped by AI-driven efficiencies and strong niche brands that deeply resonate with founders and LPs.
At Openseed VC, we believe that the fabric of venture is evolving - not just for founders, but for funds and LPs alike. Just as AI is predicted to enable the first single-employee billion-dollar unicorn, solo GPs are set to shape this new era of venture investing - leaner, more agile, and precise, and ultimately driving superior returns.
“It’s never been more challenging to be a solo GP, yet I can't imagine a better time to build one" - Maria Rotilu, Founder and Solo GP at OpenSeed VC.
Diving Deeper into AUM Disparities
Gender-diverse teams achieve median IRRs 9.3% higher than male-only teams.
Female-led funds of less than €25M deliver 22% higher portfolio revenue growth at Series A (exact sourcing requires clarification from provided data).
"I don't mean to be difficult - I've worked on diversity in tech initiatives since the late 00s and of course see first hand how much harder it was for me to raise than others - but I come back time and time again to a core belief:
While I am a female solo GP, I aspire to and am working towards becoming a great investor, not a great investor for a female solo GP." — Sarah Drinkwater, Founder and Solo GP at Common Magic
Conclusion
The solo GP model - long embraced in the U.S. - is steadily gaining traction in Europe, driven by the need for agile decision making and personalized portfolio management. The data confirms this rise, particularly in early-stage and underserved markets. While female GPs face persistent AUM gaps they make an iu compelling case for LP diversification. With female solo GPs like Gloria Bäuerlein paving the way, the future of European venture capital may well be defined by lean, decisive teams that leverage data, automation and deep networks to drive innovation.
Want to learn more? Check the articles below! 💡
Female-Led Solo GP Fund: “Meet 8 extraordinary female VCs who redefine venture capital” – Flyer One
Solo GP Lists & Insights: “The Power of Solo GPs + A List to Know” – Visible.vc
VC Structure in Europe vs. US: “How does Europe’s VC scene compare to that in the US?” – Sifted
“The things nobody told me about launching a VC firm: How to set up a fund structure”, Carmen Alfonso Rico, Founder of Cocoa for Sifted
“Raising Common Magic I” - Medium
Gloria Bäuerlein, GP, Puzzle Ventures: “Navigating the World of Venture Capital Solo” - LinkedIn
🙌🏼 People who inspired us lately
Magda Lukaszewicz
Magda Lukasiewicz, Partner at Inventure.
Magda Lukaszewicz joined Inventure as a new partner to help build the most ambitious seed fund in the Nordics and Baltics. “Since my first days in VC, I’ve had close relationships with Inventure, and multiple co-investments with Balderton Capital. It gave me the chance to get to know the team well, but also see the evolution over the last years. I want to build and create businesses that leave a legacy - companies and firms that are bigger than our individual selves”
Regina Polanco
Regina Polanco, Founder and CEO of Pyratex.
Regina is the founder of Pyratex, a company dedicated to the development of sustainable fabrics. A law graduate from CEU San Pablo, in her final year of studies, Polanco contacted a designer and launched her own fashion brand. Pyratex has been growing, never leaving their “Advancement through nature” tagline behind. They act as R&D partners and fabric suppliers for several clothing brands, and plan to keep disrupting the textile industry.
👉 Read more here.
🤑 Latest Fund News
Adara Ventures first close of Fund 4, with a target of €100 million
🇪🇸 Adara Ventures has announced the first close of its fourth flagship fund, AV4, targeting €100 million to invest in sectors like cybersecurity, applied AI, digital infrastructure, hardware components, digital health, and space. The firm emphasizes creating 'dragons' - companies that return the entire fund - and has secured over €140 million in commitments for its fourth-generation funds, including AV4 and Adara Ventures Energy (AVE), a Pan-European fund dedicated to advancing energy transition technologies. Congrats to Rocio Pillado and the rest of the Adara Ventures team.
👉 Read more here.
Open Ocean has raised €100M for it’s fourth flagship fund
🇫🇮 OpenOcean, Pan-European venture capital fund has closed the first financing round of its fourth main fund with €100 million and is targeting a final closing of €130 million in the first half of 2025. The fund focuses on early-stage startups in the fields of AI, data and software development.
👉 Read more here.
Cherry Ventures’ $500M triumph: Fueling Europe’s first trillion-dollar vision
Huge congrats to Sophia Bendz, Dinika Mahtani and the rest of the team at 🇩🇪 Cherry Ventures on the recent $500M fund for early-stage rounds and follow-on rounds at Series B and beyond. Cherry wants to help build the “first trillion-dollar company in Europe.” We love the ambition! 🚀
Emblem’s $85M launch: Pioneering seed investments across Europe and beyond
Bénédicte de Raphélis Soissan and her co-GP Guillaume Durao at Emblem have just raised $85M for their first fund. 🇫🇷 Emblem, a seed investment firm that wants to make 25 to 30 investments with its initial fund. Ideally, they would lead or co-lead seed rounds with tickets ranging from €500,000 to €3 million. They have already made 16 investments, eight of them in France, six in the Nordics - Denmark, Sweden, one in Italy and one in the U.S.
Funding news⚡
Quantexa has raised a €163.3M Series F
Industry: AI | Location: 🇬🇧 United Kingdom | Funding: €163.3M Series FQuantexa, a British Decision Intelligence company co-founded by Laura Hutton, has secured a €163.3M Series F round led by Teachers’ Venture Growth (TVG) to use AI to unify siloed data.
👉 Read more here.
Multiverse Computing raises €67M
Industry: Quantum Computing | Location: 🇪🇸 Spain | Funding: €67M Equity RoundMultiverse Computing, the startup specializing in quantum computing software, has received a €67M investment from the Spanish government. Their flagship product, CompactifAI, leverages quantum-inspired algorithms to compress large AI language models to 10% of their original size, making performance more efficient.
👉 Read more here.
Universal DX secures EIB funding to advance cancer detection!
Industry: Medtech | Location: 🇪🇸 Spain | Funding: €20M EIB LoanUniversal DX, a Sevilla-based medtech startup, secured a €20M loan from the European Investment Bank (EIB) to advance its liquid biopsy solutions for early cancer detection.
👉 Read more here.
🎧📚 What are we reading and listening to?
ESG in VC: Great resources 🌱
ESG for VC: A Guide for Responsible Investors - 500 GlobalPractical steps to integrate ESG into VC processes. 👉 Read more
Responsible Investment in Venture Capital - Principles for Responsible InvestmentThis report tackles how VCs can drive positive change and sustainable growth, with insights from Peter Dunbar. 👉 Read more
Growing the Seeds of ESG - KfW & Boston Consulting GroupA framework for assessing and enhancing ESG efforts in VC and startups. 👉 Read more
Materiality Assessment for VC - VentureESGA deep dive into ESG risks and opportunities for due diligence and portfolio management. 👉 Read more
What we have been up to? 🎉
Lunch & Learn session on Dual-Use & Defense Tech
The biggest returns often come from bubbles - so is defense tech the next big one? Could 5x returns soon be the norm?
Thank you to everyone who joined us for the session on Dual-Use & Defense Tech, and to our fantastic speakers! Nela Braun, NATO Innovation Fund (NIF), Joram Voelklein, Alpine Space Ventures, Stanislaw Kastory, Expeditions Fund, and the moderator Iwona Cymerman, FundingBox Deep Tech Fund.
Discover key insights from the session here.
Attend one of our partners’ events 🎟️
0100 Europe, April 2-4th, 🇳🇱 Amsterdam.
15% discount on tickets. Use code: EWVC15
The Spring Summit by Carta, April 10th, 🇬🇧 London.
EU-Startups Summit, April 24-25th, 🇲🇹 Malta
20% discount on tickets. Use code: EWVC20.
0100 Emerging Europe, May 14-16th, 🇭🇺 Budapest.
20% discount on tickets. Use code: EWVC.
SMIL - The happiest startup experience in the world!, May 22, 🇩🇰 Aarhus
Mashup, May 27-28th, 🇸🇪 Malmö
SuperVenture, 2-4th, 🇩🇪 Berlin.
SuperReturn International Berlin, June 2-5th, 🇩🇪 Berlin
10% discount on ticket. Use code: FKR3584EWVC
SuperReturn Climate & Energy Transition, June 2-4th, 🇩🇪 Berlin
10% discount on ticket. Use code: FKR3593EWVC
SuperReturn Emerging Markets, June 16 - 18, 🇳🇱 Amsterdam
SuperInvestor, November 4 – 7, Amsterdam
SuperVenture North America, 18 November, NYC
We're a squad of over 1000 senior female venture capital wizards from all over Europe and beyond. We're here to flip the script and make things right.
Join us in shaking up the VC world! 🚀
Take care!European Women in VCFollow us on LinkedIn