Irish-founded venture capital firm Tapestry VC has officially closed its third investment vehicle, Fund III, raising $80 million (€70 million) to back early-stage founders across Europe and North America. The fund is nearly triple the size of Tapestry's previous vehicle, highlighting the firm's growth and strong reputation in the global technology ecosystem.
Founded in 2018 by Irish venture capitalists Patrick Murphy and David Kelly, Tapestry VC has developed a highly targeted investment philosophy: focusing almost exclusively on repeat founders at the pre-seed and seed stages across software, AI, fintech, and deep tech.
Triple the Capital to Fuel Larger Seed Checks
With the closing of Fund III, Tapestry will significantly scale up its participation in competitive seed rounds. Typical check sizes will increase to between $1 million and $3 million, up from the $500,000 to $1 million range in previous funds. The firm plans to build a concentrated portfolio of approximately 30 companies, offering hands-on assistance with hiring, international expansion, and follow-on fundraising.
The fund's investor base represents a high-profile mix of institutional investors and tech executives. The British Business Bank acts as the fund's co-anchor with a $40 million commitment, alongside returning institutional LPs including Railpen and Molten Ventures. Additionally, Sarah Friar, the CFO of OpenAI and a long-time supporter of Tapestry, participates as an investor and advisor.
A Track Record of Early AI and Tech Wins
Tapestry's success is anchored by early-stage bets on some of Europe's most prominent technology success stories. Its portfolio includes:
- Manna: The pioneering Irish drone delivery startup founded by Bobby Healy.
- Nothing: The consumer electronics startup led by OnePlus co-founder Carl Pei.
- Fin: The AI-driven customer service platform (originally part of Intercom) which was acquired by Salesforce in a landmark deal valued at approximately $3.6 billion.
"We believe that serial founders-those who have already built, scaled, or exited companies-have a unique advantage in navigating the early-stage landscape," remarked David Kelly. "Fund III gives us the capital density to lead their rounds and help them build global winners."
Establishing a Dual London-San Francisco Axis
To support its growing European portfolio, Tapestry is establishing a new flagship office in London. Co-founder Patrick Murphy is relocating from San Francisco to head the London operations, working closely with European tech hubs while David Kelly continues to lead the firm's presence in San Francisco.
This dual presence allows Tapestry to act as a bridge for European startups looking to expand into the US market, and vice versa. "The lines between Silicon Valley, London, and continental Europe are blurring," added Patrick Murphy. "Our goal is to be the first-choice partner for founders who think globally from day one."
Tapestry VC Fund III: Backing High-Growth Startups
Tapestry VC's successful closing of its $80 million Fund III, supported by the British Business Bank, marks a significant boost for early-stage technology investments in the UK and Ireland. The fund will focus on backing repeat founders and high-potential startups in areas like artificial intelligence, deep tech, and enterprise software. Tapestry VC's investment philosophy is centered on providing active, hands-on support during the seed and Series A phases, helping founders build global businesses.
The British Business Bank's participation, through its Enterprise Capital Funds program, underscores the state's focus on unlocking venture capital for high-growth tech firms. The new fund will target investments across Europe, with a particular focus on the London and Dublin tech hubs.
Frequently Asked Questions
What is Tapestry VC's investment focus for Fund III?
Fund III will focus on seed and early-stage investments in technology startups, with a preference for backing repeat founders in software and deep-tech sectors.
How is the British Business Bank involved in the fund?
The British Business Bank is a major cornerstone investor in Fund III, providing capital through its Enterprise Capital Funds program to stimulate early-stage VC investments.
What regions will the new Tapestry fund target?
The fund will invest across the European technology ecosystem, prioritizing active tech clusters in the UK, Ireland, and the Nordics.
Frequently Asked Questions
What does 'Fund III' mean for Tapestry VC?
Fund III represents Tapestry VC's third investment fund, raising $80 million in capital to back early-stage technology startups.
What is a repeat founder and why does Tapestry prioritize them?
A repeat founder is an entrepreneur who has previously started and run a company. Investors prioritize them because they have experience navigating startup growth and challenges.
How does the British Business Bank support venture capital?
Through its Enterprise Capital Funds program, the British Business Bank invests in early-stage VC funds, increasing the availability of venture funding for small businesses.
Frequently Asked Questions
What does 'Fund III' mean for Tapestry VC?
Fund III represents Tapestry VC's third investment fund, raising $80 million in capital to back early-stage technology startups.
What is a repeat founder and why does Tapestry prioritize them?
A repeat founder is an entrepreneur who has previously started and run a company. Investors prioritize them because they have experience navigating startup growth and challenges.
How does the British Business Bank support venture capital?
Through its Enterprise Capital Funds program, the British Business Bank invests in early-stage VC funds, increasing the availability of venture funding for small businesses.
