Partech launches €360 mn venture fund to back software, data and fintech in Europe

Partech launches its successor €360 mn venture fund to back mission-critical software, data and fintech specialists in Europe and announces its first investment in smartpricing.

The latest fund of Partech (simply called Partech Venture) is doubling down on the same focus as its predecessor (Partech International Ventures VII) i.e. unearthing and backing mission-critical software companies powering the digital transformation of Enterprises and SMBs.

The investment team, led by Philippe Collombel and Reza Malekzadeh is reinforced by experienced international team members, including Jean Sini, Simone Riva and Elena Moneta.

Partech launches €360 mn venture fund to back software & fintech in Europe

Together, they bring extensive experience as operators and investors, combining a highly technical, international, and business-oriented approach.

They will leverage their expertise in Product, Business Development, Go-To-Market, M&A, C-Level Hiring and raising capital to support the portfolio companies of the new fund. The companies will also be able to tap into the specialist platform teams of Partech.

Philippe Collombel, General Partner and co-founder of Partech

Partech Venture will invest across four key themes: Application Software, Deep Tech Software (Data & AI Infrastructure, Cybersecurity, DevOps), B2B & B2B2C Vertical Platforms and Fintech & Insurtech Applications

Philippe Collombel, General Partner and co-founder of Partech

The thesis and ambitions remain the same; leading investment in 22 to 24 Series A / Series B stage European companies which have from €1 to €10 mn recurring revenue.

European capabilities in creating mission-critical applications for productivity, digital infrastructure, data protection and cyber security, as well as tools that leverage data and AI, have dramatically improved over the last 10 years.

Partech Venture welcomes a diverse cohort of investors ranging from international institutions to sovereign funds and leading multinational corporates, including the likes of Allianz France, BNP Paribas, Bpifrance, CDP Venture Capital, Edenred, FDJ Ventures, JCDHolding, and Lombard Odier Investment Managers.

Reza Malekzadeh, General Partner of Partech

We are essentially keeping the same investment strategy for our venture fund: we will seek to support promising category leaders that are striving for either European dominance or the potential to expand to the US

Reza Malekzadeh, General Partner of Partech

Already, half of the fund, €180 mn, has been committed, drawing support from a diverse range of investors.

Partech Venture has already started putting this new fund to work and has made its first deal, leading the €13 mn Series A round of Italian-based Smartpricing.

The company, founded in 2020 in Arco, Trentino, offers revenue management software for hotels which enables hoteliers to increase their turnover through technologies based on machine learning models.

It uses a proprietary algorithm to processes various types of data, including those related to the market, saturation, price trends in a specific geographic area and the hotel’s history, to propose the best possible price to improve the performance of hospitality structures.

“In merely three years, Smartpricing has orchestrated 2 mn bookings for over 3,000 hotels, B&Bs, and other such travel accommodation, elevating their turnover by an impressive average of 30%

“Extending its footprint, notably in Italy and the DACH region, Smartpricing is poised to emerge as the global leader in revenue management for small and medium-sized hospitality structures”, comments Philippe Collombel.

This new round of funding will allow the company to execute on its plans to expand its team, launch new products and further consolidate its position in the software and fintech vertical for the hospitality sector.

Peter Sonner   by Peter Sonner