Fortino Capital continues European growth

Link to De Tijd article (in dutch).

From a three-person team meeting in the kitchen of former Telenet CEO Duco Sickinghe, to a company of 35 employees with offices in Antwerp, Amsterdam, and Munich. With over 800 million euros raised in capital, invested in B2B software companies, Fortino Capital has made an impressive journey over the course of 11 years. With its third generation of VC and PE funds, it is now taking the next step to further accelerate growth.

Fortino Capital invests today through two complementary strategies: venture capital (VC) for promising companies with sky-high growth ambitions, and private equity (PE) for companies with a proven track record.

"VC companies revolve around speed and ambition: founders who literally want to go from zero to a hundred in just a few years," outlines CEO and co-founder Renaat Berckmoes. "PE companies, on the other hand, have often been in business for 10 or 15 years and are looking for the next step—through further professionalization, an international push, or because they need a strategic repositioning. In PE, it's generally about companies with a clear track record and stable cash flows. They have questions about succession, expansion, or management."

"At Fortino Capital, we invest in both types of companies, but with separate VC and PE teams, each with the expertise and in-depth market knowledge needed to optimally support them."

Why B2B software?

The demand for B2B software continues to grow due to digitalization, AI, and the need for efficiency. "Success requires the right mix of technology, market knowledge, and strategy," says Berckmoes. "Innovation, scalability, and strategic support are crucial. Fortino Capital's new investment funds play a key role in this."

Fortino Capital exclusively invests in B2B software & tech. "There is enormous potential in the digitalization of traditional sectors," says Filip Van Innis, VC Lead partner at Fortino Capital. "Many SMEs are still working with pen and paper or outdated software. An example is Salonkee, a platform for hair salons that integrates payments, bookings, and marketing. It’s not rocket science, but it drives strong growth. With 7,000 clients across six countries, it proves that digitalization in unexpected sectors offers great opportunities—exactly why B2B software is so interesting."

AI: hype of gamechanger?

Generative AI is getting a lot of attention. Van Innis does not see this as a threat to investments in B2B software. "For us, AI is software," he states. "B2B software is on the brink of a new wave of growth precisely because of AI. Software becomes much more powerful with it and will enable new markets, like services, to be automated."

AI is sometimes overestimated in the short term, but in a few years, it will have a larger impact than we can imagine today. Fortino Capital sees how AI truly strengthens companies in its investment portfolio.

Vertuoza helps construction companies by allowing them to dictate quotes via voice on their smartphones, so they are automatically ready to be sent.

Legalfly gives legal teams teams more efficiency by taking repetitive work off their hands in a secure, GDPR-compliant manner.

More than capital

Fortino Capital’s team does more than just provide money and fill a seat at the boardroom table. "Never overestimate the impact of an investor on a company," Van Innis puts into perspective. "It is the founders and their teams who make the difference. What we try to do is add tangible value. We are there at key moments and help make the difference."

That’s why Fortino Capital has an ‘operating team’ for both PE and VC, consisting of specialists who have made their mark at major software companies such as C3.ai, SAP, Oracle, IBM, or Showpad. "TechWolf, one of our VC investments, signed a contract last year with a pharmaceutical giant worth more than €1 million annually," Berckmoes provides as an example. "Startups don’t negotiate these kinds of deals every day. Our team assists them, so they can negotiate with confidence. Not through days of workshops, but with advice and tips from their own years of experience, often via WhatsApp. Talent recruitment is another example of how we help make a difference. Because money is often not the bottleneck, talent is. That's why we have two very experienced recruiters on staff, exclusively searching for talent for our portfolio companies."
 

Expansion into Germany with new funds

Fortino Capital has launched two VC and two PE funds in recent years. Currently, a new VC fund and a new PE fund are in the works. This is how Fortino is focusing on further growth in the B2B software market. "For these funds, we are significantly expanding the scope. Not only Belgium and the Netherlands are included, but also Germany, Austria, and Switzerland. Just in Germany, the market is ten times larger than in Belgium. We now have teams in Munich," continues Van Innis. "Local presence is crucial: we build long-term relationships with entrepreneurs, and that requires close involvement. Our investors place great importance on this."

While the geographic focus broadens, the approach and vision remain the same. "In PE III, we aim for a larger fund than in PE II. Our goal is not to chase larger deals, but rather to expand our geographic scope. We want to invest in early stages where we are the first institutional investor for entrepreneurs. In VC, we are once again aiming for a diversified but still concentrated fund. We reserve half of the raised capital for follow-on funding for the most promising companies we invest in. In our second VC fund, we support 27 companies, but ultimately, six companies represent 50% of the invested capital."

Returns and risks

"Our first generation (VC1 and PE1) has now delivered excellent results," Berckmoes concludes. "We’ve been able to monetize our investments at a good pace, which made it easier for many of our initial investors to also commit to VC2, PE2, and now VC3 and PE3." Fortino Capital is also heavily investing in its own funds. "We invest significantly in our own funds. This shows that our interests align with those of our investors."

Link to De Tijd article (in dutch).