Leta Capital launches third USD100m fund targeting UK, European and US-based growth companies
Leta Capital (Leta) has launched its third and largest fund to date, which will invest in excess of USD100 million in UK, European and US-based growth stage software and technology companies over the next three years.
The new fund will have a particular focus on supporting East European and Russian-speaking entrepreneurs operating out of international hubs such as London and New York, who Leta founder and IT entrepreneur, Alexander Chachava, maintains remain over-looked and under-valued by many VCs and investors.
Founded by IT entrepreneur Alexander Chachava and with over USD45 million invested to date, Leta is an international venture capital firm focused on supporting software start-ups and growth stage companies with ambitious plans to expand internationally.
Since its foundation in 2012, Leta has invested over USD45 million in creating a portfolio of about 30 technology companies including Synthesis AI, Unigine, InDriver, NovaKid and 365Scores.
It has had a number of successful exits, which in most cases have seen international companies and investors acquire its successful start-ups. This has included the sale of Bright Box HK to Zurich Insurance Group in 2017, and WeWork’s acquisition of sales & marketing platform Unomy.
Alexander Chachava, Managing Partner of Leta Capital, says: “While we are significantly broadening our geographic focus towards key global hubs, our strategy effectively remains the same: to identify exciting, high-potential technology start-ups and entrepreneurs, and support them in realising their international ambitions.
“Our research suggests there are in excess of 17,000 Russian-speaking and East European IT entrepreneurs and start-ups active in the UK, Europe and US. Despite spawning businesses such as Telegram, Revolut, TradingView, PandaDoc, Preply, etc, our analysis shows they continue to be under-valued and overlooked for funding, despite often generating significant cash when it comes to ARR. These entrepreneurs are some of the most dynamic and technically skilled in the world, and for investors they represent a massive untapped opportunity.”
Leta has to-date launched two funds. Its first “evergreen” fund of USD15 million was fully deployed in early 2020, delivering a gross IRR of 27 per cent per annum to investors. Its second USD50 million fund had its first closing in Sep 2018 and has committed about 60 per cent of its capital in a portfolio of high-potential start-ups.
Leta’s investment approach is focused on early growth stages: Late Seed/Round A/Round B investments, with next round follow-ons for the best performers.
Characteristics of these companies will include: an established user base, proven product, some consistent monthly revenues, and other key performance indicators.
“A typical initial investment from us will be in the range of USD2-5 million, depending on the opportunity and deal structure. We are somewhat sector agnostic, but highly focused on disruptive software, IT and Internet technologies, which can disrupt the existing market or make it more efficient, for example by leveraging Business Intelligence, Big Data Analysis and AI-based technologies for different industries,” says Chachava.