Leta Capital starts third USD100m fund targeting the UK, European, and US-based growth firms.
Leta Capital (Leta) has started its third and largest fund to date. It invests over USD100 million in the UK, European, and US-based growth stage software and technology businesses over the following three years.
The latest fund will direct on supporting East Europe. Russian-speaking entrepreneurs operating out of global hubs such as London and New York remain overlooked and under-valued by many VCs and investors. The VC firm assists them under the supervision of Leta founder and IT entrepreneur Alexander Chachava.
Leta Capital is established by IT entrepreneur Alexander Chachava and with over USD45 million funded to date. Leta is a global venture capital firm converged on helping software start-ups and growth-stage businesses with driven projects to grow globally.
Following its establishment in 2012, Leta has financed over USD45 million in building a portfolio of about 30 technology firms, including Synthesis AI, Unigine, InDriver, NovaKid, and 365Scores.
It has had many successful exits, which in many instances have seen global firms and investors acquire its flourishing start-ups. That has included the deal of Bright Box HK to Zurich Insurance Group in 2017 and We Work’s takeover of sales & marketing platform Unomy.
Alexander Chachava, the Founder of Leta Capital, asserts, "We are significantly expanding our geographic focus towards vital global hubs. But our strategy efficiently remains the same. To distinguish exciting, high-potential technology start-ups and entrepreneurs and assist them in achieving their global ambitions.
"Our researchers advise there are over 17,000 Russian-speaking and East European IT entrepreneurs and start-ups operating in the UK, Europe, and the US. Although spawning businesses such as Telegram, Revolut, Trading View, PandaDoc, Preply. Our research shows they remain undervalued and neglected for funding, usually generating notable resources for ARR. These entrepreneurs are some of the most dynamic and technically able in the world. For investors, they serve a largely untapped opportunity."
Leta has to the time, started two funds. Its first "evergreen" fund of USD 15 million was wholly disposed of in early 2020, delivering a gross IRR of 27 percent per annum to investors. The second USD50 million fund held its initial closing in Sep 2018 and has performed about 60 percent against its funds in a portfolio of high-potential start-ups.
Leta's financing approach focuses on early growth stages such as Late Seed/Round A/Round B investments, with subsequent round follow-ons for the most solid performers.
Features of these businesses will involve
- An established consumer base,
- Certified product,
- Remarkable consistency in monthly revenues,
- Different key performance indicators.
"A standard initial investment from us will be in the range of USD 2-5 million, depending on the opportunity and agreement structure. We are moderately sector agnostic. But we are extremely focused on disruptive software, IT, and Internet technologies. They can disrupt the current market or make it more productive. For instance, by leveraging Business Intelligence, Big Data Analysis, and AI-based technologies for various industries," says Chachava.