Tapestry VC launches €70 million Fund III with British Business Bank as co-anchor

London-based venture capital firm Tapestry VC today announced the launch of its €70 million ($80 million) Fund III, which is almost three times the size of the firm’s previous funds. The new fund is co-anchored by a €35 million ($40 million) commitment from new sovereign investor British Business Bank, alongside returning institutional co-anchors Railpen – a €40 billion (£35 billion) pension plan – and Molten Ventures – a €1.1 billion (£1 billion) fund-of-funds. OpenAI’s CFO Sarah Friar is also joining the fund.

Fund III aims to double the firm’s scale and deepen its focus on backing repeat founders across Europe and North America. Patrick Murphy, founder of Tapestry VC, said: “I’ve spent a decade investing on both sides of the Atlantic and the opportunity in Europe has never been clearer. There’s an entire generation of founders returning to build again with sharper instincts, deeper networks and who share our global-from-day-one ambition.”

Audrey Miller, Partner at Tapestry VC, added: “Today’s repeat founders represent a generation shaped by expensive experience. They’ve already navigated the realities of building, scaling and exiting technology companies and, second time around, they want partners who have felt the same pressures. This is what Tapestry VC brings.”

Founded in 2018, Tapestry VC is an early-stage venture capital firm that specializes in working with founders before there is even a formal company or process in place, supporting product direction, hiring, fundraising and more. Its portfolio includes companies such as Nothing Technology, Ladder, Fin AI, Maze AI, Sunrise Robotics, Manna Air, Relay and Crossbeam.

According to data provided by the firm, European tech has minted 477 unicorns over the past eight years, of which 60% were started by a repeat founder. Data from Dealroom shows that companies built by second and third-time European founders are worth €1.9 trillion ($2.2 trillion) in combined enterprise value and employ more than 2 million people across 23,000 companies globally – up seven times from just 300,000 employees in 2018.

Repeat founders in Europe outperform first-time teams, raising 45% more capital compared to first-time teams and 23% more than the baseline. Currently, 75% of startups worth over €43 billion ($50 billion) globally were founded by serial entrepreneurs.

The launch of Fund III also marks notable changes for the firm, including the opening of Tapestry VC’s flagship London office, and founder Patrick Murphy relocating from San Francisco to London after a decade of investing on both sides of the Atlantic. All of the firm’s recent serial founder bets at Seed and pre-Seed in Europe have raised Series A rounds in the €100 millions or fielded acquisition offers, contributing to the fund’s 100% graduation rate.