Iron Wolf Capital's Fund II Hits €30M, Targets €100M Total

Key Takeaways

Sector: Artificial Intelligence (AI), Healthcare Healthtech & Medtech, Technology Software & Gaming.
Geography: Lithuania.

Analysis

Despite challenges in the global fundraising environment, Vilnius-based venture capital firm Iron Wolf Capital has successfully secured over €30 million for its second VC fund, with a target final close of €100 million. This achievement positions Iron Wolf Capital among the leading VC players in the Baltic region.

Strong Support from Existing and New Investors

Iron Wolf Capital's second fund has garnered significant support, with over 90% of limited partners from its initial €21 million fund returning. The investor base includes Lithuanian state bank ILTE and more than 40 European family offices and high-net-worth individuals, reflecting confidence in the firm's investment strategy.

Focus on Deep Tech Amidst Declining VC Funding

While overall venture capital funding in the Baltics has seen a decline, deep tech startups have experienced a surge, raising a record €160 million in the first half of 2024. Iron Wolf Capital's new fund aims to capitalize on this trend by investing in transformative, science-driven ventures.

Investment Strategy and Portfolio

Founded in 2017 by Kasparas Jurgelionis, Zygimantas Susnys, and Viktoras Jucikas, Iron Wolf Capital has made over 20 investments in the past three years, with an average check size of approximately $494,500 and a maximum investment of $4.3 million. The firm plans to write initial cheques ranging from €500,000 to €2 million for its second fund, targeting around 25 startups.

Commitment to Baltic Founders

Iron Wolf Capital maintains a strong focus on supporting Baltic founders, including those in the diaspora. The firm is equally inclined to back founders operating in global hubs like Silicon Valley or Berlin, provided they have Baltic roots.

Promoting Diversity in Venture Capital

In a notable move, Iron Wolf Capital has promoted Eglė Lilles, previously head of platform and investor, to partner. Lilles becomes one of the few senior women in the Estonian VC ecosystem, highlighting the firm's commitment to diversity and modern venture-building approaches.

Looking Ahead

With €30 million already secured and a clear strategy focused on deep tech, Iron Wolf Capital is well-positioned to become a powerhouse in Northern and Eastern Europe's venture capital landscape. The firm's leadership, including managing partner Kasparas Jurgelionis and co-managing partner Žygimantas Susnys, brings extensive experience from investment banking and strategic consulting, further strengthening its position in the market.

As the Baltic startup ecosystem continues to mature, Iron Wolf Capital's new fund represents a significant step forward in providing specialized capital to science-driven startups in the region.