Tapestry VC opens London office as it launches $80M Fund III for repeat founders
London-based Tapestry VC has launched an $80m (€70m) Fund III to back repeat founders across Europe and North America.
The fund is co-anchored by a $40m commitment from new investor British Business Bank, alongside returning backers Railpen and Molten Ventures. OpenAI chief financial officer Sarah Friar is also among the backers.
At almost three times the size of its predecessors, Fund III targets seed and pre-seed deals across software, AI, cybersecurity, fintech, autonomy, and deep tech.
Tapestry, founded in 2018, was an early advocate for repeat founders. It backed Nothing's seed round in 2020 before the smartphone maker hit $1bn in revenue.
The numbers make its case. European tech has minted 477 unicorns over the past eight years, and 60% were started by repeat founders. Those founders raised 45% more capital than first-time teams, and globally 75% of startups worth over $50bn were founded by serial entrepreneurs.
Alongside the fund, Tapestry has opened a London office, with founder Patrick Murphy relocating from San Francisco.
Betting on experience is no guarantee. Tapestry's early bet Hopin soared to a $7.75bn valuation during the pandemic, then unravelled as in-person events returned, ultimately selling off its products. Repeat founders also command higher prices, which can squeeze returns if bets don't land.
Capital is flowing towards proven operators. Companies backed by second- and third-time European founders are now worth $2.2trn combined and employ over 2m people across 23,000 companies.
"Today's repeat founders represent a generation shaped by expensive experience," says Audrey Miller , partner at Tapestry VC. That experience is now the asset investors want to own.
Image credit: Tapestry VC
Read more: EU-Startups · Tech.eu · Silicon Republic · UKTN
