Marathon Venture Partners, a venture firm based in Athens, recently secured €75 million in capital commitments for its latest fund, as reported by partner Panos Papadopoulos. This development increases the firm’s total assets under management to €175 million, a significant amount for an eight-year-old seed-stage investor in Greece. The firm has experienced notable exits, including the sale of its portfolio company Augmenta to CNH, valued at $110 million, and the sale of shares in Hack the Box to the investment firm Carlyle.
Panos Papadopoulos discussed these developments ahead of an in-person event with TechCrunch in Athens on May 8, which will also feature Greece’s prime minister, Kyriakos Mitsotakis. Key questions for the event include the reasons for choosing Greece as a focus and the timing of these investments.
Despite historically lower venture investments in Greece compared to other European countries, Marathon I has achieved top percentile performance globally in realized returns by focusing on industries such as AI-assisted research, robotics, and defense.
Marathon Venture Partners supports founders tackling challenging markets, often requiring specialized knowledge or operating in regulated or overlooked industries. The firm emphasizes building on a fast-growing, ambitious community.
Greek startups have traditionally faced challenges in scaling beyond the local market; however, Marathon notes that these startups often serve global customers from day one, making local revenue minimal while targeting Fortune 500 companies.
Recent fundraising challenges globally have not deterred Marathon. The firm maintains substantial equity positions and keeps fund sizes small to allow for meaningful returns through secondaries and strategic mergers and acquisitions. They focus on cash flow, contrasting with the broader market’s long holding periods.
Although European venture capitalists are increasingly drawn to deep tech and AI sectors, Marathon prefers backing people transforming their sectors without limiting themselves to specific industries.
Greek founders, traditionally receiving less funding than their counterparts in other European cities, are seen by Marathon as opportunities for non-consensus investment, moving quickly without concern for who else is investing.
In light of global exit challenges, the firm advises its portfolio companies to consider all strategic alternatives, such as secondary sales or acqui-hires, focusing on long-term company growth.
The EU’s support for startups through various funding mechanisms is acknowledged, but Marathon cautions its portfolio founders not to overly focus on non-market activities.
Finally, improved macroeconomic conditions in Greece have not significantly impacted Marathon’s operations, as the firm focuses on talent and innovation, often seeing adversity as a driver for invention. With some American VCs reducing European investments, Marathon sees increased opportunities for local funds, emphasizing self-reliance and founder alignment.