Lakestar is a young venture capital firm trying to raise $800 million, but sceptics say it's been held up.
Six sources told Business Insider that Lakestar, which was founded in 2012, has faced delays in persuading limited partners to invest in its mega-fund. They attributed the delays to questions over Lakestar's startup track record, team dynamics, and its reliance on the success of its founding partner Klaus Hommels.
"We can't relinquish everything in terms of start-ups and technology to the US or other countries. I strongly believe that Europe is a fantastic continent, rich in breakthrough technologies and home to some of the world's leading universities and most established companies. I'm confident that the time is right to invest in Europe and thereby power a strong, collective future."Lakestar, which is headquartered in Zurich, has raised two funds to date.
. This, the person said, was unusual for a younger venture capital firm."Normally you start with one strategy," they said.The person said at least one LP who had invested in an earlier Lakestar fund had declined to write a check for the new one for this reason. The talks fell through, and Lakestar invested in Algomi again from its second fund. It's unusual to invest in the same firm across two funds because it can create conflicts of interest, the sources said.
Multiple sources who have worked with Lakestar have described the firm as"difficult" to work with. One person was so put off that they recommended a potential LP not to invest in Lakestar during a due diligence call. While at Lakestar, Mistry has overseen the firm's investment in Revolut, a fast-growing fintech companyby the UK's financial authorities after a whistleblower raised compliance concerns.
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