Forestay Capital Launches $220M Growth-Stage VC Fund Focusing on AI
Forestay, Europe’s newest venture capital firm, has officially launched its second fund, Forestay Capital II, with a hard cap of $220 million. Based in Geneva, Switzerland, Forestay has quickly made a name for itself by leading rounds in several enterprise startups over the past few years. This new fund marks a significant milestone for the firm and the broader European tech ecosystem.
Forestay’s Strategic Focus
Forestay Capital II aims to invest in growth-stage companies across Europe and Israel, with a particular focus on enterprise AI and SaaS. The fund plans to lead investment rounds of $10 million to $15 million, targeting companies at the inflection point of their growth.
Frederic Wohlwend, the Managing Partner at Forestay, emphasized the fund’s strategic focus:
“We only do enterprise AI and SaaS. We don’t do any hardware, even sensors and stuff like this. We’re super focused in terms of stage — we mainly play in Series B. We can do A to C rounds, but our sweet spot is Series B at the inflection point.”
Notable Investments and Achievements
To date, Forestay has backed 13 companies, including notable names like K2view, Nexthink, Scandit, and Wasabi. Three of these companies have achieved unicorn status, and two have been acquired. Most recently, Forestay led the Series B round for Neural Concept, a company spun out from EPFL, raising $27 million to revolutionize fast manufacturing design with AI.
In addition to Neural Concept, Forestay led the $12 million Series A round for Stratio, a predictive maintenance startup based in Portugal.
Backing from Prominent Investors
The Forestay fund was established as part of B-Flexion, the private investment vehicle of the Bertarelli family. This family is renowned for building Serono into the third-largest biotech company globally before merging with Merck KGaA. Forestay’s new fund also receives support from Anaïs Ventures, the investment vehicle for members of the Firmenich family, famous for their perfume empire.
Julien Firmenich commented on the collaboration:
“Forestay’s focused investment strategy and operational acumen, honed through years of industry experience, align perfectly with our vision.”
The European and Israeli SaaS Ecosystem
Europe, with its diverse geography and languages, has become a prime market for SaaS and enterprise solutions. Forestay’s emergence adds another valuable option for growth-stage startups in Europe, where growth capital is often more challenging to secure compared to the U.S.
An analysis of the top companies and trends in the SaaS market across Europe and Israel last year highlighted the growth in generative AI as a driving force behind the market reset. Forestay’s focused approach and strategic investments are well-positioned to capitalize on this trend, contributing to the dynamic and competitive landscape of enterprise AI and SaaS.
In summary, Forestay Capital II’s launch signifies a promising new chapter for growth-stage AI and SaaS startups across Europe and Israel. With its strategic focus and strong backing, Forestay is set to play a pivotal role in the future of enterprise technology.
