Kindred Capital, A London-based VC that supports start-up founders in Europe, has raised its second fund to 81 81 million.
It’s just a tad bigger than that the first fund of the firm, which has invested in 29 companies and was launched in 2018. The portfolio includes funds from Fund One, which builds software for self-propelled vehicles; Paddle, for e-commerce SaaS software; Pollen, a peer-to-peer market for experience and travel; and Farewill, which allows you to create a will online.
However, perhaps what really sets Kindred apart from many other seed VCs is its “Fair Trial”. This shows that the founders who are backing them in the fund are effectively becoming Kindred co-owners. When VC LPs return their investment, like the firm’s co-founders, the founders also share any back-end fund profits, until they have passed the retirement period.
More broadly, Kindred argues that the idea is to encourage more collective models, in which the founders actively help each other to achieve their goals. VC says, “This has also had a positive impact on data flow, with businesses offering up to 38% of Kindred data at the top of the channel.”
Specifically, Kindred projects that will return around $ 5 million to the founder from the first search, a profit that would go to the other General Partners. Assuming these exits are completed, based on each of the two founders, a quick backup calculator suggests that this is 80,000 each.
Meanwhile, Kindred has already started investing from its second fund. It has led to 10 seed investments in companies such as BotsAndUs, Gravity Sketch and Beit.
The LPs in Fund Two are: University of Chicago, Industrial Engineering, Generations, Capital Sands, British Patient Capital, omzomer, and Legal & Public. Founders such as Taavet Hinrikus (TransferWise), Carsten Thoma (Hybris), and Rishi Khosla (Oak North) also invested in Kindred’s second fund.