Marathon Venture Partners, an entrepreneurship firm in Athens who boasts to be “first day partners for Greek technology partners”, just closed its newest fund with € 75 million in capital engagements, according to partner Panos Papadopoulos.
The vehicle brings the firm’s total assets under management to € 175 million-a significant amount for an eight-year investor, in the seed phase in Greece and a reflection, as well, for some considerable outputs. Among them was the sale of Marathon Augmenta’s portfolio company last year at CNH, a manufacturer of farm machinery and construction equipment in a money agreement that valued Augmenta with $ 110 million. Marathon also sold some of her shares in Hack The Box, a platform of online security rating and talent evaluation, at Carlyle’s investment firm in a secondary transaction.
We talked to Papadopoulos in front of a person sitting with him as part of Techcrunch’s first strict evening in Athens on Thursday, May 8, a night that will also include a deep diving with the Prime Minister of Greece, Kyriakos Mitsotakis. What we wanted to know – and what will be the central questions on Thursday – is: why Greece, and why now?
Greece has historically seen fewer investments in venture than other European countries. What, if anything, has changed instead that enabled you to raise a € 75m fund when collecting global funds has become more challenging?
For beginners, marathon I is a high percentage of the percentage globally in (returned returns); We built a portfolio that captured the current Zeitgeist before, for example, scientific research, robotics or protection aided by it became the norm.
What is the thesis of your firm and how does the thesis of this new fund change given the extended timeframe we are seeing for the exits globally?
We are supporting the founders who make something difficult in important markets. It can be difficult because it requires unique knowledge, such as a doctorate of research, or a senior agency, which means understanding a regulated or bypassed industry such as power network management. And we will continue to double in our rapid growth community, which has accumulated experience and expertise, along with ambition.
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Greek beginnings have traditionally faced challenges to become beyond the internal market. How are you evaluating the potential of an international growth of a company in this environment where capital efficiency is more important than rapid expansion?
I beg to change. Greek beginnings use local talent to serve leading global customers and markets from day one. Across our portfolio, there is virtually no income coming from the domestic market. But they are serving the best part of Fortune 500.
At the same time, capital efficiency and team gravel are the second nature for our community.
We are seeing less IPO in globally and prolonged periods of retention for companies supported by enterprise. How did this affect your conversations with your limited partners about the expected timeframes and returns?
We do not need the decacorns that our fund economy will work. We invest early, hold significant positions of net capital and keep our small funds sizes. These offer different opportunities for significant returns, including secondary and strategic M&A, well before an IPO. We made secondary again in 2021 when most of the market was promising endless time of retention. In our culture, cash is king. It seems that many others forgot it.
Many European VCs are emphasizing deep technology and it. Is marathon taking a similar approach, or do you see different specific opportunities for the Greek ecosystem?
Of course we are all, but the definition of deep technology has stretched out and means many different things to different people. We are not focusing on any specific sector ourselves – on the contrary, we are focusing on people who change their sectors. We were probably the first generalist to invest in defense before the Ukraine war.
Greek founders have historically received fewer funding than counterparts in Berlin, Paris or Stockholm. Are you seeing ratings for Greek beginnings that reflect this discount, and does this create better returns?
In our experience, this is not about geography or price. We are supporting the founders in non-consensus opportunities that most VCs would ignore. We move quickly with conviction and do not ask who else is investing. These may sound like table shares; They are not yet.
Given the challenging environment of global exit, how are you advising your portfolio companies on strategic alternatives such as secondary sales or purchases received?
We work with our portfolio companies towards the predetermined alive scenarios. Starting from there, all the options are on the table. We see that the founders really want to run their companies for the long run. We believe that a secondary sale can actually help you, and more often we are supporters of such scenarios.
The EU has highlighted supporting beginnings through various funding mechanisms. How important is the non-diluted capital from these resources in your portfolio companies compared to five years ago?
We welcome any such initiative. However, we advise our portfolio founders not to waste time in non -market activities.
How has Greece’s improved macroeconomic situation affected both in the process of collecting your funds and in the quality of the beginnings you see?
Always is always good when you are not making press titles, but what we do is less important for local macro. When it comes to the talent front, I would really say based on naive empiricism that, if there is any connection, this is the opposite. Difficulty is the mother of all inventions.
Many US VCs have withdrawn from European investments. Has this created more opportunities for local funds like marathons, or has the trade union agreements more challenging?
Definitely is undoubtedly a different market, but it also creates increased opportunities for European investors. I do not think that the flood of capital in 2021 really changed the opportunity for European companies. We always have to rely on ourselves and be connected to the founders for the long run.
