Investor Profile: Isomer Capital - Thesis, Cheque Size & How to Apply

Isomer Capital is a London fund of funds that backs the backers. Founded in 2015, it invests in early-stage European venture capital funds and then co-invests directly in the breakout companies those funds find. For founders, that makes it a second-order investor: you are unlikely to pitch it first, but it may be the reason your fund can lead your next round.

Thesis: back focused local champions

Isomer Capital looks for venture funds that are typically contained in size and really focused on what they do, often local or sector-specific champions. It backs emerging managers and has incubated some funds. Sitting across dozens of funds lets it spot breakout companies early and add capital alongside its managers.

Its co-founders and partners include Chris Wade and managing partner Joe Schorge, with partner Thomas Schneider named in its fund reporting. The firm is headquartered in London and invests across the UK and Europe.

Fund size and cheque size

Its most recent flagship vehicle is Isomer III, a €250 million fund reported at first close in 2023, when about a third had been raised. It planned to invest €5 million to €10 million in 20 early-stage funds, plus about €1.5 million each in six to eight micro venture funds, deploying over three years. Returning investors at first close included British Business Investments, which committed up to €60 million, the European Commission, investment firm Italmobiliare, and endowments, pensions, corporates and family offices from Europe, Asia and the United States.

Alongside the fund of funds, Isomer Capital launched a €100 million opportunities fund in 2021 to invest directly in growth-stage startups from its funds portfolios, writing tickets of €3 million to €6 million into about 20 European companies. By 2023 that fund was reported as nearly fully deployed.

Notable portfolio

Isomer Capital has invested in more than 70 European venture firms, including Seedcamp, Hoxton Ventures, Kindred, Entrepreneur First, OTB, Frst and Atlantic Labs. That gives it indirect exposure to 29 European unicorns, including UiPath, wefox, Sorare, Deliveroo and Tractable. It has also made 31 direct co-investments and secondary transactions, giving it direct stakes in companies such as refurbished electronics marketplace Refurbed, e-bike maker Cowboy and temporary work platform Zenjob.

Programmes run

Isomer Capital runs no accelerator or public grants programme. Its programmes are its funds themselves: the flagship fund of funds, the opportunities fund for direct co-investment, and its emerging-manager work.

Credits and perks

There is no startup credits or perks scheme at Isomer Capital. Its value to a founder is follow-on capital and continuity: as its own reporting puts it, it wants to extend the influence of its venture firms, giving them more capital so they can stay on boards and support companies between rounds.

How to apply for funding

Fund managers pitch Isomer Capital by email at [email protected] with an elevator pitch and teaser materials, according to its published fund-of-funds guide. Founders should not expect a direct application portal: the route in is to raise from one of its portfolio funds, perform well enough to be a co-investment candidate, and let that fund bring Isomer Capital into a later round. No public startup application portal was found in the sources read.