- Forestay, based in Geneva, closed its second fund, Forestay Capital II, at $220 million.
- Focuses on European and Israeli markets, targeting growth rounds of $10-15 million for enterprise startups.
- Notable investments include Scandit, K2view, and Neural Concept.
- Led by Frederic Wohlwend, former Global Chief Digital Officer of Merck KGaA.
- Specializes in enterprise AI and SaaS, excluding hardware investments.
- Supported by Anaïs Ventures, linked to the Firmenich family.
- Enhances Europe’s SaaS and enterprise ecosystem amidst rising AI adoption.
Main AI News:
Forestay, a burgeoning venture capital firm based in Geneva, Switzerland, has marked a significant milestone with the closure of its second fund, Forestay Capital II, at a robust $220 million. Initially gaining prominence for its pivotal role in financing enterprise startups across Europe, Forestay’s influence grew notably with its early backing of Zurich-based scanning software startup, Scandit, which has since amassed $273 million in funding.
Forestay Capital II is poised to strategically deploy its funds across Europe and Israel, focusing particularly on leading growth rounds ranging from $10 million to $15 million. This approach targets companies at critical inflection points, aiming to propel their expansion and market presence.
To date, Forestay has successfully invested in 13 companies, including notable successes like K2view, Nexthink, Scandit, and Wasabi. Notably, three of these ventures have achieved unicorn status, with two others being acquired. Recently, Forestay bolstered Neural Concept, a spin-off from EPFL, with a substantial $27 million Series B round aimed at advancing AI-driven manufacturing design capabilities.
Founded as part of B-Flexion, the investment arm associated with the Bertarelli family renowned for its success with Serono, Forestay is steered by Frederic Wohlwend, former Global Chief Digital Officer of Merck KGaA and Serono. Reflecting on his experience, Wohlwend emphasized their strategic focus on enterprise AI and SaaS solutions, eschewing hardware investments to concentrate exclusively on software-driven innovations.
In discussing their investment philosophy, Wohlwend highlighted Forestay’s preference for Series B investments, characterizing their approach as capturing enterprises on the brink of significant revenue milestones. This strategy positions Forestay uniquely as a “nearly growth” fund, tailored to capitalize on emerging market opportunities swiftly and effectively.
The firm’s new fund has garnered support from Anaïs Ventures, an investment entity associated with the Firmenich family, renowned for its global fragrance empire. Julien Firmenich underscored the alignment between Forestay’s operational expertise and Anaïs Ventures’ strategic vision, endorsing Forestay’s focused strategy and deep industry acumen.
Forestay’s emergence comes at a pivotal moment for the European SaaS and enterprise markets, offering critical growth capital amidst a burgeoning landscape shaped by generative AI advancements. As Europe continues to evolve as a hub for technological innovation, Forestay’s specialized approach adds significant value, enriching the ecosystem for growth-stage startups seeking strategic funding avenues.
Conclusion:
Forestay Capital II’s strategic emphasis on enterprise AI and SaaS investments, guided by experienced leadership and bolstered by strong financial backing, signifies a pivotal contribution to Europe’s evolving tech landscape. By targeting critical growth stages and aligning with emerging trends in generative AI, Forestay is poised to strengthen the competitiveness of European startups, providing essential growth capital where it is often scarce compared to the U.S. This focused approach not only enhances market opportunities but also underscores the region’s potential as a hub for innovation in enterprise software solutions.
