- A female-founded VC firm has closed the first tranche of its £30 million ($36 million) early-stage fund.
- The Covenant aims to invest in startups that focus on financial access, health and improvement, and climate action.
- Check out the 11-slide LP deck the London-based company used to raise the new funds.
An early-stage venture capital fund founded by three women has just closed the first tranche of its £30 million (about $36 million) fund.
Established in 2022, Pact wants to be the first institutional ticket in rounds with checks from £1m to £1.5m across 18 to 20 deals.
The London-based company is the brainchild of Monik Pham, former head and founding member of the Fuel Ventures team. investment banker and founder Tong Gu; and Reem Mobassaleh-Wyndham, former vice president of technology at sovereign wealth fund Mubadala.
Her investment thesis focuses on three themes, which the group refers to as the “ABCs”: access to financial inclusion, improvement and well-being, and climate action and sustainability.
While the investments will span Europe, Pact will help its portfolio companies scale into regions underserved by traditional investors, Gu told Insider. Gu will support companies looking to enter Asia, while Pham and Mobassaleh-Wyndham will focus on EMEA, specifically Türkiye.
Britain has also piqued Gu’s interest and is “specifically looking for deals that are overlooked by other investors”.
There are “a lot of good talent companies in the UK’s regional ecosystems” because of their proximity to good universities, Gu added. “That’s where we want to spend more time, looking for interesting deals and supporting founders from those regions.”
Campden Hill Capital is its flagship LP, with high-net-worth individuals and founders from past investments including Jeff Dean, head of AI at Google, Yeming Wang, former head of EMEA at Alibaba, Keith Teare, founder TechCrunch shareholder, and Academy Award-winning actress and United Nations Goodwill Ambassador Anne Hathaway, among others. It aims to secure a second fund close by early next year, Gu added.
Unlike other firms where LP relationships can be opaque, Pact plans to connect its investors in everything from due diligence to portfolio management. He sees this as a draw for potential portfolio companies that can then benefit from the network’s expertise.
That’s just one way Covenant hopes to set itself apart with its founder-friendly strategy. He also plans to give 1% of every ticket as a gift to the founders to spend on well-being and personal growth. To take advantage of the non-dilutive promise, founders must match it. The company also mandates an annual two-week management holiday.
“Great minds also need great rest,” Gu said.
This was shaped in part by the three general partners (GPs) having and raising children for the first time during the fundraising, Gu said.
“We had to build the company to be inclusive by design, from day one, by necessity.” The company also has a flexible yet high-performance work environment with a detailed childcare policy, she added.
“That’s something we’re really interested in, not only within the company, but it’s also how we work with founders.”
About 50% of the fund’s current deal flow is based on women, although this came about organically rather than through a set quota, Gu added.
Check out the 11-slide LP pitch deck below.