European venture capital firm Backed VC has closed its third fund, Backed 3, at its $100 million hard cap while celebrating its 100th portfolio company. The London headquartered investor specializes in seeding frontier technology startups whose founders aim to build long lasting, globally significant businesses. The new vehicle marks an escalation of the firm’s ambition following strong performance from its earlier funds.
Fund strategy and focus
Backed 3 will continue the firm’s emphasis on outlier founders who have made meaningful technological or conceptual breakthroughs. The fund concentrates on three frontier segments, AI native therapeutics, blockchain and banking infrastructure, and manufacturing automation, all areas where Backed has already helped create unicorns. The new capital allows the firm to lead pre seed and seed rounds with initial checks ranging from $500,000 to $5 million, and it has already doubled down on six of its highest conviction founders from prior funds.
Growing institutional and entrepreneurial backing
Just under half of the new fund was raised from ten institutional funds of funds, including new limited partners Isomer Capital and Wunderland Capital. More than 50 family offices and entrepreneurs have also committed, among them several founders of Backed’s existing portfolio companies who are recycling their gains into the franchise. Backed’s first fund ranks in the top decile for performance and in October 2025 returned a further 35 percent of capital to investors, helping to underpin confidence in the latest vehicle.
Portfolio momentum and outcomes
Backed’s portfolio now spans 100 pre seed and seed investments, with five companies already crossing the one billion dollar valuation mark and eighteen reaching enterprise values above $100 million. Early bets include Invisible Technologies, Thought Machine, General Intuition and Flow Engineering, which in the last quarter alone secured follow on rounds of $20 million to $150 million from leading U.S. firms such as Sequoia, General Catalyst, Greycroft and Khosla Ventures. Across the portfolio, Backed reports a 90 percent follow on rate from seed, counting companies that subsequently raised capital, achieved profitability or were acquired.
Community driven model and events platform
Since launching in 2016, Backed has positioned itself at the intersection of venture capital and community building. The firm runs a global events program of around 40 gatherings per year, bringing together more than 4,000 founders and investors to exchange ideas and build relationships. During the Slush conference next week, Backed plans to host six separate events for about 2,000 guests, reinforcing its strategy of using curated experiences to connect with ambitious entrepreneurs.
Perspectives from limited partners
Institutional backers say the new fund reflects both performance and a differentiated approach to working with investors. Isomer Capital highlights its conviction derived from Backed’s track record and what it describes as genuine partnership on firm building and co investment opportunities. Wunderland Capital, which joins the LP advisory committee, points to the firm’s reputation among founders and its perceived edge at the intersection of technical and scientific innovation.
Founder endorsements of the Backed approach
Several founders credit Backed with taking contrarian risks and providing support through difficult inflection points. Leaders at portfolio companies such as Invisible Technologies and General Intuition describe the firm as being among the earliest institutional investors willing to underwrite bold theses before meaningful revenue traction existed. They also emphasize the team’s willingness to remain engaged through “bet the company” decisions and then recycle their own success into the next generation of founders as limited partners.
With Backed 3, the firm is positioning itself as a long term partner to European founders with global ambitions in capital intensive, breakthrough technology fields. The combination of strong historical returns, high follow on rates and an extensive events driven community strategy gives the fund a distinct profile in an increasingly competitive seed market. As frontier technologies reshape sectors from healthcare to finance and manufacturing, Backed aims to help create the European companies that can compete at trillion dollar scale.