Capital A Partners (CAP A), an early stage venture capital fund based between Charleston, SC, New York, NY and Stockholm, Sweden, has teamed with Finnish venture capital investor, Butterfly Ventures, to launch Butterfly Venture Fund III, a €24M early stage development and seed fund. Based in Finland, the fund will invest in Nordic-based startups focusing on hardware, software and digital technologies in the IoT, AI, VR and AR sectors.
Initial investors in the fund include Tekes Venture Capital Ltd, Elo Mutual Pension Insurance Company, Fennia Mutual Insurance Company, Tradeka-invest Ltd, AI- Partners Ltd, LocalTapiola Pohjoinen Mutual Insurance Company and Gerako Ltd. The fund is launching with more than half of its target size and is open for additional investors to reach the €24M target.
“We haven’t invested in such an early stage venture fund before, but the focus area of the new Butterfly Ventures’ fund along with the versatility of the team and the success of their earlier investments convinced us. We have researched several funds and this was suitable for Fennia’s investment portfolio,” says Eero Eriksson, Deputy Managing Director of Fennia.
CAP A and Butterfly Ventures are already co-investors in Finland-based maritime IoT startup, Conexbird, from their previous respective funds. “We are excited to be working with such a successful and experienced Butterfly team as we embark on our first Nordic-based fund. CAP A has made investments in the Nordics since 2013; however, our partnership with Butterfly establishes a more substantial presence here and provides more resources to help build our portfolio companies into successful global enterprises,” states Tanya Marvin-Horowitz, CAP A’s Stockholm-based partner.
To date, Butterfly Ventures has invested in 40 portfolio companies and based on data from the Finnish Venture Capital Association (FVCA) it has roughly 15-20% market share of all early stage first time investment rounds in Finland.
CAP A, based between Stockholm and the United States, has 18 portfolio companies; 4 in Sweden, 2 in Finland, 1 in Iceland and 11 in the United States. The new fund in the Nordics makes CAP A one of the first U.S. based VC funds to have a presence both in the United States and the Nordic Region.
The CAP A venture fund invests primarily in early stage B2B technology-based businesses in the United States and across the Nordics. The new partnership with Butterfly Ventures will provide CAP A with additional deal flow for Nordic companies seeking to expand into the United States market.
Butterfly Ventures is an early stage focused startup development and venture fund management company based in Oulu, Finland, with presence in Helsinki, Stockholm and the United States. Partners in Finland include Matti Kanninen, Ville Heikkinen and Juho Risku, with Tanya Marvin-Horowitz in Stockholm, and David Mendez in the United States.