Isomer Capital’s unique role in empowering VCs

Isomer Capital, founded in Europe, is a fund-of-funds venture capital firm that focuses on investing in early-stage European VC funds and scaling tech startups. Their mission is to build a trusted ecosystem, supporting both VCs and startups with a global reach, bridging the gap between European startups and international markets. Isomer stands out by not only investing in European VC Funds, but also investing portfolio companies, enabling them to have a broader impact across various sectors, especially technology.

Isomer’s investment strategy is rooted in long-term partnerships, with a focus on scalability and innovation. Over the years, they have invested in over 80 VCs with a portfolio of over 2,000+ companies. A growing emphasis on ESG-focused startups has emerged, driven by the fact that young entrepreneurs are increasingly focusing on building businesses that address critical global issues, particularly in sustainability. This trend reflects the changing landscape of entrepreneurship, where startups are playing a pivotal role in tackling environmental and social challenges. As a result, Isomer’s portfolio is increasingly composed of companies that prioritize sustainability, positioning them well for future growth.

A hands-on approach to building lasting VC partnerships

Isomer Capital’s position as a fund-of-funds makes them unique in the European venture capital space. What distinguishes Isomer is it is privately owned and therefore independent, and only focuses on early stage European venture enabling a more agile, entrepreneurial and market-driven approach. This makes Isomer one of the few independent, private fund-of-funds in the region, providing a more entrepreneurial and market-driven approach than government-backed counterparts.

Additionally, Isomer does not just provide capital; they actively engage with the VCs they invest in, offering strategic guidance and support throughout the lifecycle of the funds. By partnering with Isomer, VCs gain access to a network that spans the entire continent, and Isomer is known for being deeply involved, offering ongoing mentorship, LPAC participation, and on occasions crisis management. This hands-on, partnership-driven approach has been a key differentiator for Isomer, allowing them to build long-term relationships and ensure the success of both VCs and the startups within their portfolios.

Fostering accountability for socially impactful investments

The partnership with Happiness Capital has confirmed Isomers own investment choices. While Isomer does not identify as an impact fund, the collaboration with Happiness Capital has validated many of their investment decisions, particularly those involving ESG-focused startups. Happiness Capital’s focus on sustainability has supported Isomer portfolio companies addressing critical issues like climate change, renewable energy, and social impact. This relationship provides Isomer portfolio companies with additional co-investment support in backing ESG companies, such as Better Dairy. 

Through this partnership, Isomer has experienced first-hand the value of blending profitability with purpose. While most VCs already aim to create positive societal impact, Happiness Capital formalizes this commitment by holding Isomer accountable to a “happiness index,” which evaluates the social and environmental outcomes of their investments. This added structure reinforces the importance of aligning financial returns with meaningful impact.

A focus on frontier innovations

Looking ahead, Isomer Capital envisions continued growth through investments in emerging technologies, including climate change technologies and other frontier innovations. They will maintain their close collaboration with Happiness Capital, ensuring that both parties continue to find synergies in backing startups that make the world a happier and more sustainable place.