A new venture capital (VC) firm, Yellow, is making waves in the European startup scene. Founded by Oscar Pierre and Sacha Michaud, the founders of Glovo, and Adam Lasri, a former investor for VC giant Atomico, Yellow is a €30 million ($32 million) pre-seed fund that aims to invest in early-stage startups.
Key Takeaway
Yellow, a new VC firm founded by the Glovo founders and a former investor from Atomico, is betting on Southern Europe with a €30 million pre-seed fund. With its unique focus on key markets in the region, Yellow aims to be the first believer in startups, providing guidance and bringing in other investors. Its success in fundraising reflects a growing interest in Southern Europe among investors.
Investing in Southern Europe
Unlike many other VC firms that focus on countries like the U.K., France, Germany, and the Nordics, Yellow has its sights set on Southern Europe. Specifically, the firm wants to invest in key markets such as Spain, Italy, and Portugal.
Adam Lasri, one of the founders, explained that Yellow will be an opportunistic tech fund, meaning it won’t have a specific focus on a particular industry. The firm plans to invest in both B2B and B2C startups across a range of sectors.
Being the First Believer
Yellow won’t take the lead as the main investor in its deals but aims to be the first believer in startups, bringing in other investors and providing advice at scale. Lasri said, “We’re never leaders, just collaborators.” Yellow believes that many early-stage companies face common challenges and can benefit from guidance on team setup, pitch deck formatting, and navigating the VC ecosystem.
Also, the founders’ experience with Glovo, a successful startup that was sold to Delivery Hero for over €2 billion, makes them attractive to other founders seeking advice. Lasri explained, “Founders love to talk to another founder who has successfully sold his company.”
Unlocking Opportunities in New Markets
In addition to investing in French and Southern European startups, Yellow also plans to invest in companies that want to expand quickly to Spain, Italy, and Portugal. Yellow can act as a strategic investor, helping entrepreneurs overcome challenges such as talent support, regulatory hurdles, and introducing them to large enterprises in these new markets.
Strong Investor Interest
Yellow was able to close its initial fund of €30 million in just five months. More than a dozen European unicorn founders, as well as several family offices from Southern Europe, have invested in the fund. The firm didn’t receive any public money for this fund.
This shows that there is appetite for more VC funds in Southern Europe, even though the funding numbers for startups in the region are lower compared to the U.K., Germany, and France. With foreign investors increasingly looking at opportunities in Spain, Yellow’s focus on the region validates the potential in this underserved market.
