Forestay Capital's Strategic Success in Securing $220 Million for Second Fund

July 5, 2024, 9:30 am
Forestay Capital
Forestay Capital
Location: Switzerland, Geneva
Employees: 1-10
Founded date: 2018
Forestay Capital, under the leadership of Frederic Wohlwend, has achieved a significant milestone by closing its second fund at an impressive $220 million. This accomplishment highlights the firm's expertise and success in the realm of enterprise technology investments. Specializing in fast-growing Enterprise AI and Software as a Service (SaaS) companies, Forestay II is poised to make impactful investments across Europe and Israel, focusing on visionary teams that are reaching critical growth inflexion points. By actively partnering with these teams, Forestay aims to catalyze accelerated growth and drive innovation within the tech sector.

The foundation of Forestay's success lies in its strategic approach to investment. With a keen eye for identifying future category leaders, Forestay has already demonstrated its prowess by backing 13 companies in its first fund, including notable names like Wasabi, Nexthink, Scandit, and K2View. Three of these companies have achieved unicorn status, while two were acquired at an average gross IRR exceeding 50%. This track record speaks volumes about Forestay's ability to nurture and support high-potential ventures.

Forestay II's investment strategy revolves around a lead investment sweet spot of $10-15 million, allowing the firm to establish strong partnerships with promising startups. By leveraging their operational acumen and industry experience, Forestay aims to make high-conviction investments that drive long-term value and growth. The recent partnerships with enterprise AI startups such as Veriti and Neural Concept underscore Forestay's commitment to fostering innovation and scaling within the tech landscape.

The successful closure of Forestay II's second fund is a testament to the firm's dedication to its investment strategy. Fred Wohlwend, Founding and Managing Partner of Forestay Capital, emphasized the importance of their strategic focus in cultivating a concentrated portfolio of future industry leaders. This approach has not only attracted backing from some of the largest family offices in Europe but also solidified Forestay's position as a trusted partner in the tech investment space.

One such partnership is with Anaïs Ventures, the investment vehicle for certain members of the Firmenich family. Julien Firmenich, a limited partner in Forestay II, expressed excitement about aligning their vision with Forestay's focused investment strategy and operational expertise. This collaboration underscores the shared commitment to driving innovation and shaping the future of the tech industry.

In conclusion, Forestay Capital's strategic success in securing $220 million for its second fund is a testament to the firm's vision, expertise, and commitment to driving innovation in the tech sector. With a portfolio of high-potential companies and a strong network of partners, Forestay is well-positioned to continue shaping the future of Enterprise AI and SaaS technology.