Early-Stage European VC Firm Episode 1 Closes $95M Third Fund, Utilizes In-House Data Tools for Deal Sourcing
London-based early-stage venture capital firm Episode 1 has successfully closed its third fund at £76 million ($95 million), marking a significant milestone in its journey. Established in 2013, Episode 1 has built a robust portfolio with exits from notable companies like FatMap and SimplyCook, demonstrating its prowess in identifying and nurturing high-potential startups.
The firm’s previous funds, backed by the Enterprise Capital Fund, received support from the British Business Bank, facilitating investments in high-growth ventures. In its latest fundraising endeavor, Episode 1 secured capital from the National Security Strategic Investment Fund (NSSIF), in collaboration with the British Business Bank and the U.K. government. Notable limited partners (LPs) include British Patient Capital and Molten Ventures, among others.
One distinguishing feature of Episode 1’s LP base is the inclusion of former or current founders, such as Alex Chesterman and Aidan Corbett, fostering a dynamic ecosystem conducive to the exchange of valuable insights and deal flow opportunities. Leveraging this network, Episode 1 aims to expand its reach and support startups at various stages of growth.
A notable evolution in Episode 1’s investment strategy is the development of proprietary data-driven tools for identifying promising founder talent and potential investment opportunities. By aggregating data from diverse sources like LinkedIn and GitHub, Episode 1 can pinpoint emerging startups and anticipate fundraising activities, gaining a competitive edge in the early-stage investment landscape.
Since the launch of its latest fund, Episode 1 has deployed capital into promising ventures like Sano Genetics, leveraging its advanced deal-sourcing tools to identify and engage with founders at the inception stage. With a strategic focus on software companies across diverse sectors, Episode 1 remains committed to driving innovation and fostering entrepreneurship in the U.K. and beyond.