Forestay Ventures, a venture capital firm based in Geneva, Switzerland, recently announced the launch of its second fund, Forestay Capital II, with a total of $220 million. The firm, previously not well-known in Europe, gained recognition after leading investment rounds in enterprise startups like Scandit, a scanning software startup from Zurich that has raised $273 million.
The focus of the Forestay II fund will be on investing in AI startups across Europe and Israel, particularly in companies at the inflection point of growth, with rounds ranging from $10 million to $15 million. So far, Forestay has invested in 13 companies, including successful ventures like K2view, Nexthink, Scandit, and Wasabi, with three reaching unicorn status and two being acquired.
Forestay is led by Frederic Wohlwend, who previously served as the Global Chief Digital Officer of Merck KGaA and Serono. Wohlwend emphasized the firm’s exclusive focus on enterprise AI and SaaS, avoiding hardware investments. The fund mainly operates in Series B rounds but can also consider investments in Series A and C rounds.
The Forestay fund was established as part of B-Flexion, the private investment vehicle of the Bertarelli family known for its success in building Serono into a leading biotech company before its merger with Merck KGaA. The new fund received backing from Anaïs Ventures, an investment vehicle associated with members of the Firmenich family known for their perfume empire.
According to Wohlwend, the European market offers great potential for SaaS and enterprise-focused VCs due to its fragmented consumer markets and the growth of generative AI. Forestay’s strategic investment approach and operational expertise have been recognized by investors like Julien Firmenich, aligning with their vision for growth-stage startups in Europe.
As the SaaS ecosystem in Europe and Israel continues to evolve, Forestay’s emergence provides additional opportunities for startups seeking growth capital in the region. The fund’s specialization in enterprise AI and SaaS, combined with its focus on Series B investments, distinguishes it as a valuable partner for companies looking to scale and expand their operations.
Overall, Forestay Ventures’ latest fund signifies a significant step forward in the European venture capital landscape, offering promising prospects for AI startups and contributing to the growth of the region’s tech ecosystem.
