Marathon Venture Capital, a prominent venture firm based in Athens, has successfully raised €75 million for its latest fund, marking a substantial increase in its total assets to €175 million. This achievement reflects the growing investment landscape in Greece, especially as the country traditionally attracted less venture capital compared to its European counterparts. Partner Panos Papadopoulos attributed part of this growth to significant exits from their portfolio, including the £110 million sale of Augmenta to CNH and a share sale in the cybersecurity platform Hack the Box to Carlyle.
Ahead of an upcoming TechCrunch event, Papadopoulos highlighted the changing dynamics in Greece’s venture ecosystem. He affirmed that Marathon has consistently performed robustly in terms of realized returns, having backed startups that align with evolving global trends like AI and robotics.
Marathon’s investment strategy focuses on founders who tackle challenging problems in important markets, often requiring specialised knowledge. Acknowledging that Greek startups generally face hurdles scaling internationally, Papadopoulos noted that many of their portfolio companies have successfully leveraged local talent to cater to global markets, with minimal revenue generated from Greece itself.
In light of extended exit timelines and reduced IPO activity globally, Marathon’s approach involves maintaining substantial equity stakes while investing early. This strategy encourages a variety of pathways for significant returns, including secondary sales and strategic mergers and acquisitions.
Papadopoulos remarked on the broader European focus on deep tech and AI, indicating that while Marathon does invest in these areas, their main goal is to back individuals capable of transforming their respective sectors. He emphasised their role as one of the first generalist VCs to invest in defence tech prior to the Ukraine crisis.
Despite the perception that Greek startups receive less funding than those in cities like Berlin or Paris, Papadopoulos argued that opportunities exist beyond geographical valuations. Marathon adopts a fast and confident approach to investing, often targeting non-consensus ventures that larger VCs may overlook.
In advising portfolio companies on strategic alternatives like secondary sales or acqui-hires amidst a challenging exit environment, Marathon promotes a mindset focused on sustainability and long-term growth. They support measures that could ultimately foster the longevity of those companies.
Reflecting on the European Union’s increased push to support startups, Papadopoulos acknowledged that while they welcome non-dilutive funding, they also encourage founders to stay focused on market-driven activities. As for Greece’s macroeconomic improvements, he suggested that innovation often arises from adversity, asserting that the talent pool is not necessarily linked to local economic conditions.
Finally, as American VCs retreat from European investments, Papadopoulos sees this shift as an opening for local firms like Marathon, suggesting that it is crucial to remain self-reliant and aligned with entrepreneurs for long-term success.
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