Today, we’re excited to unveil RTP IV, our latest fund to support and nurture the founders building the next generation of category-defining companies.
The fund, totaling $1 billion in new capital, is our firm’s largest to date and will be deployed across the US, Europe and Asia. Reflecting our commitment to early-stage entrepreneurs, Fund IV is $350m more than our previous fund, RTP III. It is designed to support founders throughout the ups and the downs of their journey, ultimately helping their companies be in the best position for success.
Here’s how, and why.
1. We’re thinking about the long term
Our $1 billion fund will be split into two parts, with $660M earmarked for our early-stage investment strategy and $340M to provide ongoing support to RTP IV’s ‘breakout’ portfolio companies. What does this mean in practice? We have more capital to support founders not just today, but throughout their company’s entire lifecycle.
We believe this long term collaboration with our founders is crucial in empowering startups to reach their true potential.
2. We’re a bigger fund and a bigger team
RTP IV represents an increase of more than 50% of RTP III, which closed in March 2020. But it’s not just our fund size that has grown since 2020. So has our team.
In the last three years, our employee headcount has quadrupled. We have opened new offices in London, New York, Paris, Amsterdam and Dubai. And we have brought on new investment and operational partners across all the regions in which we invest.
Our extended global reach and on-the-ground presence means we can better provide founders with knowledge of local markets and open up access to global networks and communities to help them scale. We’ve also started to build out in-region portfolio support functions so that we can give our founders even stronger support in areas like go-to-market strategies and HR.
3. We bet alongside you
The capital for this fund – as with our other funds – derives almost entirely from the reinvestment of proceeds from RTP Global’s previous investments. Our success stories include the likes of Datadog, Cred, DeliveryHero, SumUp, and many other startups.
By reinvesting our returns, we can deploy our capital to closely align with the ambitions and interests of the founders we back, serving them first, as opposed to the LP in the more traditional structures. It also means we can stay with our founders for a long time. In fact, the longest we’ve held an investment is 19 years.
As flexible capital providers, we can take bold bets and we are there for the founders – not just for the good times, but for the risky and unproven moments as well.
4. We see the opportunity in these difficult times
There’s no denying that we are operating in a tough environment right now. Startups continue to face challenging times, against a backdrop of valuation resets and further layoffs. What’s more, the fundamentals of the venture capital ecosystem are being rewritten globally.
But even in uncertain times, amazing companies are born.
We see a huge amount of innovation and opportunity across all the geographies and sectors we invest in. In the aftermath of layoffs, we are seeing incredibly talented operators finally decide to take the plunge and build. Whether by necessity or opportunity, the number of innovative companies forming right now is at an all time high.
When they are ready to raise, we believe we are in the best position to support those founders in their early days and throughout their company’s lifecycle, thanks to this new fund and our flexible capital structure.
Fund IV represents the next evolution in RTP Global’s long standing strategy of investing in exceptional founders, doing exceptional things with technology, in their earliest stages. We see real opportunity ahead and want to meet the next generation of founders ready to realize their true potential.
