What is your investment focus and strategy?

TempoCap has always been focused on investing in the tech sector, targeting promising companies across cybersecurity, which accounts for almost half of our portfolio, as well as fintech and enterprise software organisations. More recently, we have begun exploring the field of climate tech, since demand has rocketed for sustainable solutions, as well as looking for business models using AI to enhance solutions across our investment sectors. We typically only target fully-funded companies that are positioned for significant market growth, reaching €10-20 million in Annual Recurring Revenue and a workforce of 100-200 employees.

What are your founder and leadership team characteristics?

Given our focus on later-stage investments, we see firsthand how leadership teams, rather than only founders, are critical to driving scale. By the time we invest, companies may no longer be founder-led. Instead, we look for a well-balanced leadership team capable of scaling the business from €20 million to €100 million and more in revenue. We seek out strong CEOs with proven experience in growing businesses and equally important is their surrounding team of managers. By enlisting a team of five to seven professionals who collectively bring operational and strategic expertise, companies can develop a flexible leadership structure that blends the original vision and passion of the founders with the operational expertise needed for rapid growth. Whether this involves founder-CEOs supported by professional managers or professional CEOs working alongside the original founders, we value a leadership structure that combines vision with executional excellence.

What are your current portfolio and exit strategies?

​​Our current portfolio holds an average revenue of €45M across our companies. In 2024 alone we achieved exits for Dedrone and Onfido that each exceeded $500 million in value, showcasing the level of maturity within the portfolio. We are actively exploring exit opportunities for several companies, particularly those from our 2016 vintage, with the possibility of concluding transactions for three companies by Q1 2025. For companies in our 2020 vintage, including promising ventures in open banking and cybersecurity, we are taking a longer-term approach and anticipate potential exits between 2026 and 2027.

What do you anticipate for future trends in the tech sector and wider economic landscape?

We are closely monitoring key trends shaping the technology and economic landscape. AI is central to this, with its potential to reduce costs through improving efficiency and driving new revenue streams. In cybersecurity, we are exploring emerging areas such as securing cryptocurrency transactions, reflecting the maturing crypto market, as w ell as cybersecurity linked to new threats deriving from AI agents. Meanwhile, fintech innovations targeting the CFO’s office represent exciting opportunities for growth and we are also considering a major push into the sustainability and climate tech sector in 2025-2026. From an economic perspective, we are anticipating a reopening of the IPO market in 2025, which could kick off a wave of liquidity for tech companies. We are also tracking developments like the UK’s Private Intermittent Securities and Capital Exchange System (PISCES) scheme, which could provide late-stage businesses with an alternative path to public markets.

Tell us about TempoCap’s unique positioning

At TempoCap, we have carved out a distinct niche in European tech investment through our specialisation in secondaries. As one of the few firms in Europe with the capability to acquire entire investment portfolios from entities seeking liquidity, we are a trusted partner for corporates, family offices, and VCs. This positioning creates a significant deal flow that we expect to accelerate further in the coming years. Another key differentiator is our ability to deliver rapid liquidity. For example, we achieved a 0.9x DPI from our 2020 vintage in just four years – a pace that is rare in the industry. Combining the due diligence of a primary investor with the ability to invest on a secondary basis allows us to produce accelerated returns on investments and ultimately makes us a leader for LPs seeking fast returns and a lower risk profile.

What is your advice for founders?

My main advice for founders is to prioritise capital efficiency. Maintaining control over capital allocation is crucial for a company’s future, since even when you are raising substantial amounts of capital, you must still deploy funds efficiently. By constantly monitoring their cashflows, startups can navigate market uncertainties more effectively, extend their runway and potentially achieve profitability sooner. In an evolving investment landscape where investors are increasingly focusing on sustainable growth and clear paths to profitability rather than just rapid expansion, this mindset is vital.