Nothing-backer Tapestry VC raises $80M fund, opens London office

2026-07-01 · Source: Tech.eu - Tech.eu · Field: Finance & Economics — Capital Markets & Investment Management, Entrepreneurship & & Start-ups, FinTech & Digital Financial Services · Depth: Fundamental Awareness, quick

Summary

Tapestry VC, a London and San Francisco-based firm founded in 2018, has successfully raised an \$80 million Fund III, significantly larger than its \$30 million predecessor. This new fund includes a \$40 million investment from the British Business Bank, alongside contributions from Molten Ventures, Railpen, and OpenAI CFO Sarah Friar. Tapestry VC, known for backing immigrant founders and companies like Nothing, Hopin, and Fin, plans to invest up to \$3 million in leading and co-leading seed rounds, making approximately a dozen investments annually. Founder Patrick Murphy is relocating to London to head the fund, focusing on the booming European repeat founder landscape, which he describes as a "super cycle" with over two million employees across 23,000 companies. The firm's investment strategy remains sector-agnostic, covering software, AI, cybersecurity, fintech, autonomy, and deep technology at Seed and Pre-Seed stages, with a new London office to facilitate European expansion into the US.

Key takeaway

For venture capitalists or angel investors evaluating early-stage opportunities, Tapestry VC's successful \$80 million fundraise and strategic focus highlight a significant trend: the increasing size of seed rounds and the robust "super cycle" in the European repeat founder ecosystem. You should consider allocating more capital to seed-stage investments and actively seek out experienced founders in Europe, as this market demonstrates strong growth and employment figures, potentially yielding high-impact portfolio additions.

Key insights

Tapestry VC's new $80M fund targets repeat and immigrant founders in a booming European market, expanding its investment capacity and geographic focus.

Principles

• Seed rounds are increasing in size.
• Earn the right to scale investment firm.
• European repeat founder landscape is booming.

Method

Tapestry VC specializes in working with founders pre-company formation, supporting product direction, hiring, and fundraising, making ~12 Seed/Pre-Seed investments annually up to $3M.

In practice

• Seek larger seed round funding.
• Target European repeat founders.
• Engage VCs pre-company formation.

Topics

• Venture Capital
• Seed Funding
• European Startup Ecosystem
• Repeat Founders
• Immigrant Founders
• Fund III

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Editorial summary, takeaway, and curation by AIssential. Original article published by Tech.eu - Tech.eu.