83North Investment Philosophy and Past Success
Investment company 83North is a relatively small business despite its growing fund size. In fact, despite managing over $1.8 billion in total funding over the lifetime of the company, 83North only has 14 total members split between offices in London and Tel Aviv on its staff. Only seven of these members are on the investing team, with the other seven functioning as venture partners and special advisors. This relatively small team has also allowed the company to maintain closer and more personal relationships with the startup companies it invests in.
83North takes a boutique business approach when it comes to investing with the company investing in usually just one deal per year, per startup. This more patient approach allows for the company to have a much closer relationship with the startup than other venture capital firms. The team members’ experience has led to beneficial connections all over the world, which translates into a better network for startup companies they select to invest in.
This more personal approach has led to incredible success for the business over its lifetime. Since its inception, 83North has backed 12 different startup companies that have reached unicorn-level valuations. Company names amongst these 12 include delivery business Wolt and payment company Marqueta Inc., among others.
83North will not be changing much about its philosophy when it comes to the sixth venture fund despite its value.
Sixth Venture Fund From 83North
In the sixth venture fund from the company, 83North raised an impressive $550 million. The funding was mostly raised from existing backers from US endowments and family offices. The company plans to use this fund to invest in tech startups in Europe and Israel as business for the tech industry in the two regions reaches maturity.
While the fund is primarily tech-focused, 83North plans to expand the scope of its business into new areas. The investment company will now also be looking into business types such as healthcare and automation with a tech-based spin.
A portion of the new fund will also be dedicated to adding more investments into startup companies in 83North’s existing portfolio to support their growth and success. This continuous support is a part of the reason that the company has exited 21 holdings so far.
When commenting on the sixth venture fund from the business, 83North partner Laurel Bowden said, “Our fund is small and we’ve never been in a hurry to do thousands of investments; that allows us to have a big proportion of winners. There’s a coming-of-age of tech and the ability to build phenomenal companies in Europe.
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.