Sova VC, a new London based venture capital firm, launches and has announced plans to invest over €50 million of capital in building a portfolio of 20+ early stage technology companies.
Part of the Sova group of companies, which includes FCA regulated Sova Capital, Sova VC’s strategy is centred on identifying high-potential, disruptive technology companies at Late Seed and Series A stages with a particular focus on B2B and B2B2C marketplaces and software platforms with the potential to expand vertically across sectors and markets.
Although sector agnostic, the Sova VC team has a particular expertise and interest in Urban Tech, Fintech and Healthcare, and its initial geographic focus will include partnering with growth stage companies in the UK, Nordics, Baltic States and the US East Coast. Alexander Chikunov, Partner at Sova VC, said: “We are delighted to announce the launch of Sova VC and look forward to partnering with promising growth stage entrepreneurs and tech companies to help them accelerate growth, drive performance and realise their ambitions.
Typically, our partner companies will have developed a product, have a proven track record and are looking to accelerate their growth and development. In such cases an initial investment from us will typically be in the range of €0.5-1.5 million, growing to as much as €4 million in a single portfolio company.
“We believe Sova VC is unique in its ability to combine financial backing with agility, and a truly personal approach to working with entrepreneurs, whilst also being able to leverage Sova Capital’s extensive global network and financial platform, which unlocks a range of solutions and exciting opportunities for our partner companies,” said Chikunov.
Chikunov, who heads up the firm, has a track record spanning 10 years as a VC and corporate finance investor and has worked on a range of venture deals and exits involving companies such as Airsorted (Houst), Homewings, Hubble and SimplyCook. The wider team includes highly skilled professionals who have managed assets and funds in excess of $70 billion, as well as former IT entrepreneurs, giving a unique perspective and a deep understanding of technology businesses and their journey to growth.
Sova VC has already completed its first $2.5 million investment in the Series B round of translation platform solution Smartcat, a global B2B translation services marketplace that connects translation agencies, freelancers, and enterprise clients to enable continuous delivery of multilingual content. The platform serves more than 9000 corporate clients and 5000 translation agencies, and demonstrated 100% YoY growth in recent years. Chikunov says Sova VC has already developed a strong pipeline and will announce further deals imminently.
“Smartcat is a great example of the type of company we like to partner with. It is a disruptive and highly innovative B2B marketplace with a great team, fantastic offering, and a compelling opportunity to grow within a very large but fragmented industry worth in excess of €50 billion annually. In general, we are very excited about the level of entrepreneurial activity in our target markets and sectors, which is creating compelling opportunities for smart investors to get involved in emerging technologies and early stage companies with massive growth potential. Smartcat is a great example of that,” he says.