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7GC was founded in 2016 by entrepreneur Steffen Pauls (ex KKR/ most recently known as the founder of Moonfare, a $2.5bn Fintech company and marketplace for private equity) and Silicon Valley based investor Jack Leeney.
Quick facts
- Year established: 2016
- Location: California, Germany and Luxembourg
- AUM: circa 400M
- Sector/thematic focus: Consumer Internet and Enterprise Software
- Geo focus: US (75%) Europe & RoW (25%)
- Number of funds closed: 1
- Current fund size: Fund I: $100M / Fund II: $40M commitments - targeting $150M
- Equity size invested in companies: 5-15M per companies (Incl. follow-ons)
Deal sourcing capability
- Cross border team with 40+ combined years of entrepreneur and investor relationships in both USA and Europe.
- Founders’ partner of choice for expansion to Europe.
Investment strategy
7GC was founded in 2016 by entrepreneur Steffen Pauls (ex KKR/ most recently known as the founder of Moonfare, a $2.5bn Fintech company and marketplace for private equity) and Silicon Valley based investor Jack Leeney. The co-founders launched 7GC with the goal to offer its LPs attractive VC returns with better liquidity by investing in select US leading tech businesses at the growth stage. The firm’s differentiating angle sits in their expertise in bringing US founders the support in their development in Europe. A value-add which makes them a partner of choice for both Founders and leading growth investors. 7GC invests alongside leading firms such as Founders Fund, Khosla Ventures, Redpoint Ventures among others as the European co-lead or syndicate investor in top performing US tech investments.
Hands-on expertise
Steffen is an entrepreneur at heart, he started his career at BCG before founding his own Fin Tech company which he sold to a PE firm in the early 2000’s. He then spent 11 years at KKR, as the Head of Germany and a member of the European Media and Digital Team.
Jack has investment expertise which he acquired first at Morgan Stanley at the tech office desk before joining Hercules Capital and then Telefonica Ventures where he served as the US Head of Investing until 7 years ago. Jack served on the Board of 7 investments, oversaw 3 IPOs and 6 M&A exits in his portfolio.
Now as a team, 7GC has accumulated a series of successes adding to their track record - with Moonfare becoming the leading global Private Equity platform reaching $2.5bn under AuM - Led a $230M Nasdaq IPO Acquisition through their SPAC, 7GC & Co Holdings - and the closing of a first 2018 fund which amongst 10 investments counts 2 exits so far delivering a 34% DPI, 29% IRR and 2.2x MoM return for their investors.
Sector specialisation
7GC has invested in replicable large scale internet models adapted for sectors which historically operate offline (investment marketplaces, commerce enablement, telehealth, new media, future of work, enterprise SaaS and MarTech).
Business plans
The firm has built a growth platform to invest in software via different products. It is in that spirit that they launched a SPAC, offer co-investment opportunities, and maintain a close relationship with sister company, Moonfare alongside the core direct growth funds.
Key ingredients of success
Steffen and Jack believe what can scale their business sit in keeping a rigorous and disciplined “private equity” style when it comes to selecting investments – particularly around valuation.
7GC success in getting access to oversubscribed deals comes from various factors which includes a strong reputation, the “gateway to Europe” proposition they bring to the table and Moonfare’s success which keeps strengthening their name in the US VC ecosystem.
They also emphasize the importance to align their interests with their LPs where success is measured through carry and not through a piling up management fees.
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