The big picture: RunwayVC, formerly known as RunwayFBU, has completed a first closing of €40 million for its second fund. The vehicle will invest in companies at the pre-seed and Series A stages, focusing on industrial AI, software, robotics, automation, and autonomous systems.
What it will back:
- Investment Focus: The fund targets pre-seed and Series A companies in industrial AI, software, robotics, automation, and autonomous systems across Europe, with a primary focus on Norway and the Nordic countries.
- Check Size: Initial investments range from €500,000 to €1 million, with subsequent funding arranged separately.
- Investment Strategy: RunwayVC’s approach centers on achieving connectivity through sensors and IoT, developing an intelligence layer to manage these systems, and employing robotics and autonomy for action. It aims for approximately 20 investments over three to five years.
Who is behind it:
Founded in Oslo in 2021 by Tor Bækkelund and Kjell Inge Røkke, the billionaire chairman of Aker, RunwayVC operates from the Aker Tech House. Fund I was launched with 300 million Norwegian kroner and was solely backed by Aker. The second fund has attracted new limited partners, including Halliburton, Aker BP, Aker Solutions, KLP, Investinor, and several Norwegian industrial families, with Aker remaining the principal investor. Sagar Chandna serves as the firm’s senior partner and chief technology officer.
The catch:
RunwayVC’s model, where limited partners like Halliburton and Aker BP are also potential customers of portfolio companies, presents both an advantage in market access and a potential challenge. While it can provide portfolio companies with direct routes to market, it also raises questions about whether this structure might restrict deal flow to a specific industrial network rather than fostering broader competition. The transition from a single family office backer to a broader institutional investor base for Fund II suggests a validation of their strategy, but the long-term impact of LP-as-customer on deal selection and competitive advantage remains to be seen in a crowded industrial AI and robotics venture landscape.
Key Facts
- Firm: RunwayVC
- Fund: Fund II
- Raised so far: €40M
- Status: First close
- Stage: pre-seed to Series A
- Focus: industrial AI, software, robotics, automation, and autonomous systems
- Geography: Europe
- Cheque size: €500,000 to €1M
- Anchor LPs: Halliburton, Aker BP, Aker Solutions, KLP, Investinor, Aker
- Partners: Tor Bækkelund, Kjell Inge Røkke, Sagar Chandna
- Previous fund: NOK 300M for Fund I
