Lunar Ventures

What they fund

• Pre-seed and seed stage startups working on deep tech and software intersections. [2]
• Ticket sizes ranging from €300,000 to €1.5 million. [2]
• Companies in machine learning, cryptography, devtools, and emerging technologies. [2]
• European teams, with a focus on hubs like Berlin, Italy, Barcelona, and Paris. [2]
• Technical founders tackling hard problems in areas like homomorphic encryption and local-first data. [1]

Investment thesis

Lunar Ventures backs technical founders from day zero, focusing on hard problems and real technology without hype, particularly in deep tech and software intersections. [1]

• They prioritize founders who are deeply technical and working on fundamental challenges, such as homomorphic encryption, machine learning, and local-first data architectures. [1]
• The firm emphasizes being a partner that is technically sharp and low-ego, providing support during critical early stages. [1]
• They target European teams working at the intersection of deep tech and software, including machine learning, cryptography, and devtools. [2]
• The investment approach is described as a "long game," indicating a commitment to supporting companies through their development phases. [1]

Credibility: The firm's website outlines its focus on technical founders and deep tech, while a Tech.eu article details their first fund's target sectors and ticket sizes.

Value add

Lunar Ventures positions itself as a technically sharp partner that adds value through deep technical expertise and low-ego collaboration. [1]

• They provide support that founders describe as comparable to having a senior data scientist on their team. [1]
• The firm emphasizes being "in it when it counts," suggesting strong support during critical development phases. [1]
• They have a track record of making pan-European investments, leveraging a broad network across European tech hubs. [2]

Fit verdict: Ideal for technical founders in deep tech who need a partner with strong technical credibility and a long-term perspective.

Founder diligence script:

• What specific technical challenges have you faced that Lunar's expertise helped solve?
• How does Lunar's approach to support differ from other VCs you've spoken to?
• What is the expected level of involvement in technical decision-making?
• How does Lunar plan to support the company's growth beyond the initial funding round?

Portfolio focus

• Zama: A homomorphic encryption company that became a unicorn, highlighted as a key success story. [1]
• Deepset: A sovereign AI infrastructure company, announced as a portfolio investment. [1]
• Otera: A startup focused on agentic process automation. [1]
• Electric-SQL: A data platform for multi-agent systems. [1]
• Molecule: A decentralized science platform. [1]

Notable investments & exits

• Zama: Became the first fully homomorphic encryption unicorn, highlighted as a key success story. [1]
• No other specific exits are mentioned in the provided documents. [1]
• The firm's focus on early-stage deep tech suggests that exits may be further in the future for most portfolio companies. [1]

Strategic implications

Lunar Ventures' focus on deep tech and technical founders positions it as a niche player in the European VC landscape, with a strong emphasis on long-term value creation. [1]

The firm's technical expertise and low-ego approach may attract founders who value deep technical collaboration over traditional VC support. [1]

The firm's pan-European investment strategy and focus on emerging hubs like Italy and Spain suggest a strategic effort to diversify its deal flow and tap into new talent pools. [2]

The lack of disclosed co-investors and LPs indicates a potential risk in terms of transparency and network effects, which could impact the firm's ability to attract top-tier deals. [2]

Where they could go further

Lunar Ventures could enhance its strategic positioning by increasing transparency around its co-investors and LPs, which would strengthen its network effects and credibility. [2]

The firm could expand its focus to include more mid-stage investments, leveraging its technical expertise to support portfolio companies beyond the seed stage. [1]

Developing a more structured approach to measuring and communicating the impact of its technical support could help attract more founders seeking deep technical collaboration. [1]

Expanding its geographic focus to include more emerging tech hubs in Europe could further diversify its deal flow and tap into new talent pools. [2]