Unicorn VC, probably the most profitable VC agency in Europe measured by the variety of “unicorn” startups in its portfolio, has launched a brand new fund promising to create the subsequent technology of €1bn European tech firms.
The London-based agency has a novel funding philosophy, investing €1 in younger firms in return for a 0.000000001% stake, immediately giving all of their investments a unicorn valuation.
In line with George Wilderbottom, the Unicorn VCs founder and basic accomplice, their first fund created 10,000 new unicorns for €10,000, propelling them into the VC corridor of fame alongside names like Sequoia Capital and Andreessen Horowitz.
The agency is hoping that its second fund can double this quantity over 4 years.
In an unique interview with Sifted, Wilderbottom was fast to defend his funding philosophy, which has drawn criticism by business insiders through the years as “superficial” and “absurd”.
“Folks can name us names all they like, however making a unicorn for €1 is the best funding on the earth,” says Wilderbottom. “Firstly, our startups get huge media protection as a result of tech journalists love writing about unicorns and so they by no means trouble checking the main points of a fundraise anyway. So hundreds of thousands of worth in advertising and marketing immediately.”
“Second, you recognize who else by no means examine particulars? Different VCs. So half the time our firms ending up elevating on the unicorn valuation from others as a result of they only assume another person is wanting on the underlying numbers.”
“Third, we’re the highest of all these foolish “prime VC” rankings that folks do, so we get the neatest individuals desirous to work for us, who we are able to set to work on stuff that truly makes cash like making leveraged bets on the bitcoin worth and minting new NFTs. This makes us truly probably the most worthwhile VC in Europe.”
Wilderbottom added that the one downside now was that different VCs try to repeat this strategy, investing in pointless-seeming firms at insane valuations. “We had been the pioneers of this mannequin, however competitors is heating up… nicely I suppose imitation is the sincerest type of flattery.”