$160M for Flint Capital III and Opportunity, Targeting Israeli and European Startups

Flint Capital, a Boston-based venture capital firm with a strong focus on Israeli founders, announced the successful close of its third venture capital fund, Flint Capital III, alongside a later-stage opportunity fund, totalling a combined $160 million. The new capital will be deployed to support early-stage startups, particularly those founded by Israeli entrepreneurs, as they scale and expand into the US market.

Flint Capital has a track record of success, with its portfolio boasting 21 exits, including Voca.ai (acquired by Snap) and MatchCo (acquired by Shiseido), as well as two IPOs and three unicorns: Socure, valued at $4.5 billion, Flo, the leading women’s health app, and WalkMe, acquired by SAP.

The firm’s first fund, Flint Capital I, achieved a TVPI of 4.5x and an IRR of 25%, significantly outperforming the market average of 15%.

“Despite the challenging fundraising environment, where venture funds raised less than $20 billion in Q1 2024—the lowest since 2011—we managed to raise 1.5 times more than our previous fund,” noted Dmitry Smirnov, Partner at Flint Capital. “Our investors, including founders of our portfolio companies, have shown remarkable confidence in our approach, increasing their commitments and helping us secure this substantial fund.”

Flint Capital, founded in 2013, plans to continue its investment thesis of backing early-stage startups with experienced founders, with a focus on sectors like cybersecurity, digital health, fintech, enterprise SaaS, and B2C. The firm has already made 12 investments and aims to support approximately 25 companies with Flint Capital III. Additionally, Flint Capital will invest in Israeli pre-seed VC funds and accelerators, allowing it to identify and support promising startups from the earliest stages.

Venture funds are going through a difficult fundraising stage. In 2023, they raised $67 billion in capital commitments, almost three times less than the $172.8 billion in 2022, and the lowest amount of capital raised since 2016. This trend continued in the first quarter of 2024, with global startup funding simultaneously decreasing to $66 billion, marking the second-lowest first quarter since the beginning of 2018 and reflecting a 20% year-over-year decrease. At the same time the limited fundraising by VCs over the past six quarters presents a unique opportunity for those still active, as innovation and entrepreneurial spirit remain strong among founders. The rate of new business startups continues to exceed pre-pandemic levels.

The Opportunity Fund will enable Flint Capital to provide follow-on funding to portfolio companies as they scale, ensuring sustained support throughout their growth journey. Flint Capital’s partners—Dmitry Smirnov, Andrew Gershfeld, and Sergey Gribov—bring a wealth of experience in both B2C and B2B sectors, offering valuable guidance to portfolio companies as they navigate the challenges of entering new markets.