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Felix Capital: London VC that backed Gwyneth Paltrow raises $150m

The firm will use the investment to expand its portfolio focused on Europe and the US

Marie Mawad
Thursday 06 July 2017 07:15 EDT
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Ms Palthrow’s Goop, which combines e-commerce with blog entries about topics like wellness and health, is one example of the online branding businesses Felix is interested in
Ms Palthrow’s Goop, which combines e-commerce with blog entries about topics like wellness and health, is one example of the online branding businesses Felix is interested in (Getty Images)

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Felix Capital, a London-based venture-capital firm that’s backed Gwyneth Paltrow’s fashion brand Goop and online food service Frichti, raised $150m (£115.7m) to expand its portfolio focused on Europe and the US.

The fund was oversubscribed “well in excess” of $200m, showing no sign of being impacted by Brexit, founder Frederic Court said in an interview. The VC focused on offers from institutional investors and plans to use the money to grab stakes in early-stage startups that tap into the growth of digital brands. Court declined to name Felix’s investors.

“Customers are attracted to brands that resonate online - that’s the secular trend we’re eyeing, as well as anything related to well-being and technology helping you be happier or more fit.” Mr Court said. While Brexit will help tech hubs other than London emerge, as less entrepreneurs create their business in the UK, Felix already invests mostly in French and US startups and won’t change its strategy, he said.

The fundraising is Felix’s second after a 2015 round of $120m that was backed by Unilever, French luxury retail group Galeries Lafayette, and billionaire telecommunications tycoon Xavier Niel. Felix has funded Business of Fashion, an industry news site, and online fashion curator Farfetch, which sells clothing but also includes editorial content like wardrobe tips.

It’s seeking investments typically $2m to $5m per funding round, though it’s open to spending $10m or more. Ms Palthrow’s Goop, which combines e-commerce with blog entries about topics like wellness and health, is one example of the online branding businesses Felix is interested in.

With the tech sector broadly suffering a selloff from investors in recent weeks amid pricey valuations, Mr Court said he doesn’t think disruptive companies like Amazon are overvalued given their prospects in the long-run.

“If I were to disappear for 10 years, I’d rather buy Amazon stock before I go than leave my money in the bank,” Mr Court said. “There’s still momentum for disruptive companies. We’re not over-worried about valuations.”

Bloomberg

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