Leta Capital has raised a second 50 million USD fund
26 October 2018Leta Capital launched its second fund in autumn 2017, and just fully subscribed to the whole target size. The capital under management of the second fund is 50 million USD.
The second fund’s strategy follows the paradigm, "software is still eating up the world, and there is still a lot to be eaten", inspired by the thesis of the famous essay by the American venture capitalist Mark Andreessen, published in 2011.
Leta Capital believes that despite the rapid development of new IT technologies, as well as a greater focus on users, the penetration of actual use of excellent and effective IT solutions in the world is far from saturated. Complex legacy systems and generic solutions like Excel dominate in many spheres of business and life; moreover, “pen & paper” solutions hold their ground as confidently as before. This provides a huge opportunity for IT entrepreneurs to create a new class of easy-to-use solutions that effectively solve business and life problems, thus allowing tremendous growth in various industries that traditionally have not had the largest IT penetration.
The key investors in Leta Capital’s second fund are its Managing partner Alexander Chachava (founder of Leta Capital, serial entrepreneur, founder of Leta Group in Russia) and a group of private family offices. The founders of BrightBox, a former fund portfolio company acquired in 2017, are also among the fund's investors.
The fund will make late seed investments, Rounds A and B, with an average amount of 2 million USD in companies associated with Eastern Europe (approx. 70% of the fund) and Israel (approx. 30% of the fund), which already has sales in international markets. The fund will primarily focus on B2B software startups, whose founders want to build a large company and are themselves bright, ambitious entrepreneurs, professionals in the field of technological business.
The second fund started the investment phase at the beginning of 2018. It currently has 8 companies in its portfolio; among the announced deals are the following:
• inDriver is an international passenger service using the real-time deals operating model. At inDriver, all trip conditions are determined by an agreement between the passengers and the drivers. Today, 12 million people use the service in more than 140 cities and 9 countries.
• Devar is a developer of augmented reality solutions for the printing industry, working with brands like Hasbro, Rovio, etc., and with offices in the US, Europe and China.
• Bllush is a social content delivery system for the European fashion and interior design retail industry.
“We invest in business software developers with a focus on the most promising markets, where software is dramatically growing, creating a new market or crowding out the “old” one. We are interested in business intelligence projects, big data analysis projects, projects based on machine learning technology and artificial intelligence, to optimize, replace traditional business processes or perform business robotization. We invest in companies operating in the international market, which have a product and sales in 3 or 4 countries,” says Alexander Chachava, Managing Director at LETA Capital.